A request for court protection

GiFi's chairman of the management board, Patrick Puy, told staff on the evening of 20 October 2026 that the group would ask the court to open a judicial reorganisation procedure, known in France as redressement judiciaire. In a letter consulted by AFP, he blamed a sharp deterioration in the market over the summer. He wrote that the step was taken to protect the company and keep it running. Puy has led the group's management board since mid-October, and his appointment was announced days before the staff briefing. The request still has to be filed with the competent court, so the procedure is not yet open.

“As you know, the market deteriorated markedly over the summer and GiFi was not spared.”

Why the chain is struggling

Puy is the fourth executive in two years tasked with steering the group out of serious cash-flow problems, and he has previously led turnarounds at Moulinex-Brandt, Vivarte and Go Sport. The difficulties date back to a failed IT system change in 2023. Competition from Action, Maxibazar and online platforms such as Temu added to the pressure on sales. GiFi was founded by Philippe Ginestet in 1981 and is based in Villeneuve-sur-Lot in the Lot-et-Garonne department. The group operates more than 500 stores.

Headcount plans and store disposals

In 2025 the company had considered cutting 5% of its workforce, but it then suspended that restructuring plan. Since then it has held talks with the food retailer Grand Frais about handing over around thirty of its stores. Those talks show the chain has been reshaping its network before the current request. The 6,000 employees in France are therefore facing their third stage of upheaval in roughly three years.

Staff reassurance and the insolvency report

Puy sought to reassure employees that the judicial procedure would not, in itself, have any immediate consequence for jobs. He also said no new job-cut plan, known in France as a PSE, had been launched at this stage. He ended his message with a direct assurance to the workforce:

“Our stores remain open. Business continues. Your employment contracts are unchanged.”

Libération reported that the chain was in cessation de paiements, the French term for insolvency, and that its staff were anxious about their future. The articles do not confirm that status from an official source. None of them give a date for a court decision on the request.