Preservation of 166 temporary roles at Gifi's headquarters through their social strategy
In a significant move, French discount store chain Gifi has announced a major restructuring plan, aiming to address mounting challenges and regain competitive ground in the retail sector. The company, known for its low-cost offerings, is facing stiff competition from stores like Action and online platforms such as Temu.
The restructuring plan comes after Gifi's founder, Philippe Ginestet, secured a debt relief agreement with creditor banks, erasing over 300 million euros of the company's debt. In exchange, the creditors received a 40% equity stake in Gifi. This move signifies a leadership and strategic shift, with Gifi's founder stepping down from operational management.
The new president of the board of directors, Christophe Mistou, former CEO of Mr. Bricolage, has been appointed to lead the operational turnaround. The focus is on overcoming the challenges that Gifi currently faces, including a two-year loss streak and a disruption in operations due to a change in the computer system earlier this year.
As part of the restructuring plan, Gifi has suspended a social plan affecting 166 jobs at its headquarters in Villeneuve-sur-Lot. The suspension, which will take effect from September 1, is a mutual agreement with the CFDT, the majority union. However, the employment savings plan (PSE), aimed at reducing the workforce by 5% of a total of 6,000 people in France, will still proceed as planned.
The social plan at the headquarters was scheduled for negotiations on Friday, but these have been postponed due to the suspension. The plan involves eliminating 186 jobs out of 730 at the headquarters and 116 in the stores earmarked for closure.
Gifi recorded a turnover of 1.2 billion euros in 2024, but the company is yet to fully elaborate on detailed recovery plans beyond the debt restructuring and leadership change. The company has stated that the social plan affecting the 11 stores earmarked for closure will still proceed as planned.
Pierre Laffore, the CFDT representative, has stated that there will be no social plan, at least temporarily, for the 186 jobs affected by the suspension. Christophe Mistou, the new president of the board of directors, will analyze the situation and build a target organization to help Gifi recover from its losses and reposition itself effectively in the discount retail sector.
[1] Le Figaro, "Gifi: le fondateur Philippe Ginestet cède la main à ses créanciers", 2023. [4] Les Echos, "Christophe Mistou nommé PDG de Gifi", 2023.
The restructuring plan, which includes an employment savings plan (PSE) aimed at reducing the workforce by 5% of a total of 6,000 people in France, is aimed at helping Gifi regain competitive ground in the retail sector, given its current financial challenges. With the new president of the board of directors, Christophe Mistou, focusing on overcoming these issues, he will analyze the situation and build a target organization to help Gifi recover financially and reposition itself effectively in the discount retail industry.
