French retailers GiFi and BHV enter court-ordered restructuring

Two prominent French retail entities, the discount chain GiFi and the historic Paris department store BHV, have been placed under court-ordered restructuring proceedings to address severe financial difficulties.

GiFi, which employs approximately 6,000 people in France, was placed in receivership by the Toulouse Commercial Court. The company has entered a six-month observation period to determine its financial viability. GiFi’s struggles are attributed to a failed IT system implementation in 2023 and intense competition from retailers like Action and online platforms such as Temu. A follow-up hearing is scheduled for January 8.

BHV, including the iconic Bazar de l’Hôtel de Ville and BHV Parly 2, has also been granted bankruptcy protection by the Paris Economic Activities Court. The retailer, which employs around 660 to 700 people, reported a net loss of 1.85 million euros on revenues of 170.3 million euros. The company cited insolvency due to declining turnover, high liabilities, and ongoing disputes with its landlord, the Canadian fund Brookfield. BHV is entering a six-month observation period to explore potential recovery plans, a sale to a new buyer, or liquidation.