Business · Companies · 4 hrs ago
GiFi seeks court protection as financial difficulties deepen
French discount retailer GiFi plans to seek judicial recovery as it struggles with serious financial problems.
The company has about 6,000 employees and more than 500 stores in France.
New chief Patrick Puy told staff the process is intended to protect the business and keep it operating.
GiFi’s difficulties followed a failed 2023 overhaul of its computer system, alongside competition from Action and online platforms such as Temu.
Puy said stores will stay open and contracts will not change immediately, with no new job-cut plan under way at this stage.
The company will ask the relevant court to open the procedure, while its financial future remains uncertain.
GiFi plans to ask a court to open a restructuring procedure as the French retailer faces serious financial difficulties.
The company employs 6,000 people in France, whose jobs have drawn attention amid the announcement.
GiFi’s new chief executive, Patrick Puy, said the procedure would not immediately affect employment and that no new job-cut plan was under way.
He said stores would remain open and work would continue.
The company has more than 500 stores and has faced competition and problems following a failed information-system change.
- Who
- GiFi, led by new president Patrick Puy, and its 6,000 employees in France.
- What
- GiFi plans to ask a court to open a judicial restructuring procedure.
- When
- The plan was announced to employees on Tuesday evening, October 20, 2026.
- Where
- France; the company plans to approach the competent court. Le Monde says the procedure would be brought before the Toulouse commercial court.
- Why
- GiFi faces serious cash-flow difficulties, competition, and problems following a failed information-system change.
This story does not have two clearly opposing sides.
A failed change to GiFi’s information system disrupted the company’s operations and stock management.
GiFi considered cutting 5% of its workforce but later halted the job-cut plan.
Patrick Puy took over as head of GiFi.
GiFi told employees it would ask a court to open a restructuring procedure.
- Employees
- 6,000 in France
- Stores
- 513, according to Le Monde
- Headquarters
- Villeneuve-sur-Lot, Lot-et-Garonne
- New leader
- Patrick Puy
- Planned procedure
- Judicial restructuring sought from a court
3 sources
What people are saying
Our stores remain open. Activity continues. Your employment contracts are unchanged.
This procedure will not in itself have any immediate consequence for employment, and no new job-cut plan is under way at this stage.