GiFi seeks court-ordered reorganization amid financial crisis

The French discount retailer GiFi has announced its intention to seek court-ordered reorganization (redressement judiciaire) following severe financial difficulties. The company, which operates over 500 stores across France, is facing significant cash flow issues and reported losses approaching 100 million euros against a turnover of approximately 1 billion euros in 2025.

New executive chairman Patrick Puy, who has experience managing companies in crisis, informed employees that the legal procedure is intended to protect the business and allow it to continue operations. He stated that the move should not result in immediate job losses or new redundancy plans at this stage, and that stores will remain open.

The retailer's decline has been attributed to several factors, including a failed IT system implementation in 2023, intense competition from discount rivals like Action and Temu, and previous financial strain following the acquisition of Tati. The company employs approximately 6,000 people.