In a significant move reflecting its ongoing financial struggles, the discount retail chain GiFi announced on April 3, 2025, that it will close 11 of its stores across France and eliminate approximately 300 jobs, representing 5% of its workforce. This decision comes as part of a broader restructuring plan aimed at stabilizing the company, which has faced mounting challenges over the past few years.
During a meeting of the company’s Economic and Social Council, GiFi revealed that the closures would affect 116 employees directly from the stores, while 186 others associated with the headquarters in Villeneuve-sur-Lot would also face job cuts. The affected stores are located in various regions, including Lyon, Thiais (Val-de-Marne), Stains (Seine-Saint-Denis), Pontault-Combault (Seine-et-Marne), Neuville-en-Ferrain (Nord), Saint-Claude (Jura), Saverne (Bas-Rhin), La Ferté Macé (Orne), Tonnerre (Yonne), Besançon, and Toulouse (Haute-Garonne).
Despite generating a turnover of €1.2 billion in 2024, GiFi has struggled to turn a profit, facing losses for the past two years. The company's difficulties were exacerbated by a failed acquisition of Tati in 2017, the impacts of the COVID-19 pandemic, and a problematic change in its IT management system in 2023, which disrupted stock management and supplier payments.
In a statement, GiFi emphasized the need for an emergency plan to refocus on the performance of its discount model and improve customer service. Company founder Philippe Ginestet noted, "With the teams, an ambitious and dynamic emergency plan has been initiated. This will involve an accelerated, in-depth reorganization to refocus GiFi on its customers and the performance of its model."
This announcement comes on the heels of a financial restructuring agreement reached with banks and creditors earlier in 2025, which temporarily alleviated the threat of judicial liquidation for the company. However, the recent news indicates that the respite was short-lived, as GiFi continues to grapple with intense competition from other discount retailers like Action and Maxibazar, as well as online platforms such as Temu.
As the company moves forward with its restructuring efforts, it remains to be seen how these changes will impact its overall market position and the livelihoods of those affected by the store closures and job cuts. The unions representing the employees have yet to respond to the closures, but the situation has undoubtedly raised concerns among the workforce.
GiFi's announcement is a stark reminder of the challenges facing many retail brands in an ever-evolving market landscape, where consumer preferences and economic conditions are constantly shifting. The company’s future hinges on its ability to adapt to these changes and implement effective strategies to regain profitability.
In summary, GiFi's decision to close stores and cut jobs marks a significant moment in the company's history, reflecting both the difficulties it has faced in recent years and the steps it is taking to navigate a path forward. As it undertakes this restructuring, the focus will be on not only stabilizing the business but also ensuring that it remains a competitive player in the discount retail sector.
