Strife at GiFi persists despite Philip Ginestet's ousting, as he maintains a robust heritage within the company.
An Unravelling Empire: The Saga of Philippe Ginestet, the Former King of Cheap Chic
By Camille Harel, Head of large consumption/large distribution section, Published on
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Witness the comeuppance of a self-made magnate who ruled the affordable luxury scene for years, only to be overshadowed by mounting misfortunes. Founder and undisputed patriarch of the discount store chain GiFi, Philippe Ginestet, once the undisputed ruler of his fiefdom, now finds himself losing ground. A cascade of setbacks culminated in the string of disasters that began in late 2024, casting a long shadow on the once-prosperous enterprise. GiFi's fabled computing system went awry, competitors like Action and the juggernaut Temu elbowed their way into the market, customer traffic dwindled, resulting in a financial crisis so dire that the company, with 570 stores in France and a workforce of 6,000, had to resort to negotiating with the banks to stave off bankruptcy. The agreement: a concession of 300 million euros in debt. In exchange, creditors seized a 40% stake in the company, while Philippe Ginestet's personal holding company promised 270 million euros in guarantees by offloading certain assets and equities.
The drum ended for Philippe Ginestet's operational control over GiFi, as the new shareholders demanded his resignation. Battered and bruised, GiFi is now under the temporary stewardship of the consulting firm Alixpartners, with Philippe Brochard, former CEO of Auchan France, at the helm, orchestrating the turnaround plan. At the beginning of April, the company made headlines for shedding 300 jobs (5% of the workforce) and shuttering 11 stores.
A Fortune Worth 1.23 Billion Euros Before the Shakedown
Prior to this upheaval, Philippe Ginestet was, according to our calculations, the custodian of a professional empire valued at 1.23 billion euros (98th position in the 2024 edition of our annual ranking of the 100 richest French professionals). Undoubtedly, this wealth suffered a heavy blow since that tumultuous time, but the self-made tycoon remains far from destitute. "He successfully deployed a risk diversification strategy.," says a source close to the matter. His holding company, Groupe Philippe Ginestet (GPG), continues to preside over a broad spectrum of interests. This is where his distribution activities, and by extension his remaining shareholding in GiFi (60% equity), reside. Even though the chain's worth has taken a sharp dive, it still registers a revenue of 1.2 billion euros. In 2018, Philippe Ginestet also ventured into the shoe market alongside the Weinberg fund, investing in the shoe retail chain Besson Chaussures (320 million euros in revenue in 2023 and 200 stores). The grapevine even whisperers that the chain is ripe for sale.
A substantial pillar in GPG's investment portfolio is its real estate assets, boasting over a million square feet of offices, warehouses, and retail spaces, including 40% of GiFi's storefronts, totaling nearly 230 locations. The tangible potential of these properties should not be underestimated! Although it's challenging to valuate these locations precisely, it's mentioned in the 2023 records that "the value of the commercial funds is assessed at 25% of the annual TTC turnover".
Lastly, GPG's diversification portfolio consists of over 20 businesses from diverse industries. Among them is Casigimi, which has operated the Megève (Haute-Savoie) casino since 2020, previously managed by the Barrrière group. With Philippe Ginestet's machinations, he has constructed a small gambling empire, owning seven other casinos located in Mimizan, Gruissan, Granville, and more, under the Stelsia Casino banner.
A Château in the Lot and a Chalet in Megève
As a real estate magnate, Ginestet can also boast some remarkable properties. A multi-property owner, he possesses a château in Saint-Sylvestre-sur-Lot (Lot-et-Garonne). This property offers 31 suites and rooms ranging from 25 to 55 square meters, a pool, a spa, tennis courts, a mini-golf course, two restaurants - one of which is listed in the Michelin guide... All set within a sprawling 33-hectare park. Dubbed the Stelsia, this luxury four-star hotel complex, awash in fluorescent pink, blue, and yellow hues, has been for sale since mid-November 2024. The asking price: €25 million, without agency fees or negotiation, to purchase this residence. Romain Cheyrou, the director of the Immobilier Sud Périgord agency tasked with selling the property, disclosed this information to our team. Philippe Ginestet's reason for selling the property, notably, is not financial necessity. Instead, he simply lacks the motivation to renovate it to boost earnings. Situated midway between Bordeaux and Toulouse (roughly 150 km from each city), in an area far from the tourist spotlight, the château remains unclaimed by a buyer to date. "There have been tentative expressions of interest, but nothing substantial still.," adds Mr. Cheyrou.
Philippe Ginestet's Remarkable Management, the GiFi Repreneur ReduxPhilippe Ginestet's real estate portfolio extends further still. He also owns a sumptuous chalet nestled in the heart of the ultra-exclusive Megève ski resort, held through his holding. This residence, spanning 1,500 square meters and accommodating approximately 30 people, boasts high-end amenities such as a jacuzzi, a hammam, a cinema lounge, a disco, and is currently on the market. According to reports, luxury real estate companies L'Agence, run by the Kretz family, and Barnes, are handling the sale. Neither agency has confirmed or denied these allegations. The closing price for the property is anticipated to reach several tens of millions of euros. Contacted by our team, Philippe Ginestet stated he would not be available to answer our questions in the near future.
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- Despite being forced to negotiate with banks to prevent bankruptcy, Philippe Ginestet's empire, valued at 1.23 billion euros before the financial crisis, remains far from destitute.
- Groupe Philippe Ginestet (GPG), the holding company of the self-made tycoon, continues to preside over a broad spectrum of interests, with real estate assets boasting over a million square feet of office, warehouse, and retail spaces.
- A substantial part of GPG's real estate assets includes 40% of GiFi's storefronts, totaling nearly 230 locations, and the luxury four-star hotel complex, Stelsia, situated in Saint-Sylvestre-sur-Lot and currently on the market for 25 million euros.
- Additionally, Philippe Ginestet's holding company owns a sumptuous chalet in the ultra-exclusive Megève ski resort, spanning 1,500 square meters and accommodating approximately 30 people, with a potential sale price reaching several tens of millions of euros.
- Aside from real estate, GPG's diversification portfolio consists of over 20 businesses from various industries, including Casigimi, which operates several casinos, indicating Philippe Ginestet's continued presence in the wealth management and personal finance sectors.
