Gifi Secures Debt Relief and New Financing to Avoid Collapse

Founder Philippe Ginestet steps back as part of a restructuring plan to stabilize the struggling retail chain.

Gifi has reached an agreement with its creditors, including the erasure of €470 million in debt and a €150 million cash injection, to ensure its financial survival.
Founder Philippe Ginestet will step down from operational management but remains the majority shareholder and will lead the newly established supervisory board.
The restructuring plan includes a three-year strategy focused on cost reductions, operational efficiencies, and competitive pricing to counter challenges from rivals like Action and Temu.
The deal preserves Gifi's headquarters in Villeneuve-sur-Lot, alleviating employee concerns about relocation, but potential job cuts and store closures are expected as part of the recovery effort.
The company faced severe financial strain due to a 2023 IT failure that disrupted inventory management, compounded by intense competition in the discount retail sector.