This brand with 630 points of sale found itself in a complicated financial situation, close to liquidation.
Store closures, placements in receivership… The situation is not easy for many large brands in France. One of them, which has 630 points of sale and reached a turnover of 1.2 billion euros at the start of 2025, has just narrowly escaped liquidation, thus saving 6,000 employees. Until a month ago, selling was the preferred option. However, the brand is not out of the woods yet, since it is facing major financial difficulties.
The creditors decided to grant the brand a final reprieve, with the signing of an agreement on January 17. Between 250 and 400 million euros of debts were erased, according to two sources close to the matter, as reported Le Figaro. If financial institutions thus take a 40% share in the company’s capital, the manager, Philippe Ginestet, remains the main shareholder, with 60% of the shares.
In return, the latter had to provide more than 100 million euros in guarantee, via his holding company Groupe Philippe Ginestet and had to withdraw from the operational management of the company. He instead takes the head of a supervisory board which will be supplemented by a management committee, appointed by the banks.
This brand saved at the last minute is Gifi, specializing in the sale of decorative and furnishing objects at reduced prices. The company has been in difficulty since the spring of 2023. It suffered a major IT problem that year, disrupting its organization. Stores with “genius ideas” are also struggling to face competition, in particular that of Action, Lidl or the Temu site. The group also mentions in a press release “very unfavorable weather conditions for the sale of spring/summer products”.
To try to restart, points of sale will have to sell off their stocks, which are currently very high. “These stocks will have to be used efficiently without being sold off so as not to lose too much value. To date, there are already too many discounts and it is urgent to get out of this spiral,” a source close to the matter told Capital. We also need to reduce costs.
The restructuring plan will be spread over the next three years. This strategy will be based in particular on “a new commercial impetus”, based on “innovation” and “price”. The group’s lawyer, Me Christophe Dejean, told AFP that the finalization of this restructuring plan “will ensure the sustainability of the company in the best interest of the stakeholders, in particular the employees”.