Club Med Reshuffles its Leadership Amid Tensions with its Shareholde







(Updated on September 25, 2024, at 3:49 PM UTC)

A flagship of French tourism, Club Med, in search of a new financial partner, announced on Wednesday a revamped organizational structure to prepare for a “new phase of development” amid internal tensions with its Chinese shareholder, Fosun.

This new organization is intended to help the group move past several months of upheaval between its leader, Henri Giscard d'Estaing, and Fosun, the majority shareholder since 2015, linked to the ousting of Michel Wolfovski, the French CEO's right-hand man at Club Med for nearly thirty years.

The responsibilities that Michel Wolfovski had held will be divided, starting from November 1, among three deputy general managers: Gino Andreetta, Gregory Lanter, and Andrew Xu. All three will also be corporate officers.

Meanwhile, two other members of Henri Giscard d’Estaing’s team, Sylvie Brisson and Anne Browaeys, are also seeing their roles expanded.

In the press release, Mr. Giscard d'Estaing praised these “respected, committed, and experienced” leaders.

In late July, he openly expressed in an internal letter his opposition to Fosun’s decision to demand Michel Wolfovski’s departure, fueling speculation about a takeover of Club Med by the Chinese conglomerate, which holds the majority stake.

“I would like to warmly thank Michel Wolfovski (...) for his essential contribution to Club Med’s transformation period, thanks to his commitment and strategic vision,” he said in the statement on Wednesday.

“His departure comes at a time when Club Med is reaping the rewards of this strategy, with record results and a portfolio of resorts that has never been as impressive in its 75-year history,” he continued, while the company reported a rise in half-year sales, amounting to 1.15 billion euros, earlier in September.

Michel Wolfovski, who joined Club Med in 1998, reportedly lost a standoff with Fosun's chairman, refusing to have the financial department report directly to the Chinese group, according to La Lettre.

His removal has fueled concerns about a takeover of Club Med by Fosun, particularly among unions.

“Fosun has great confidence in Club Med and will fully support its future strategy, convinced of the growth potential of its business model and its French heritage,” Fosun Tourism Group President Xu Xiaoliang said in a statement provided to AFP, praising the "new generation of talent."


"2030"

The new organization, “proposed by Henri Giscard d'Estaing and agreed upon with its shareholder Fosun,” promotes two of the French CEO’s close associates while satisfying the Chinese shareholder, a source close to the matter said.

“There are people in their forties, a next generation of leadership, and they’ve been with the group for a long time,” the source said, suggesting that their appointment is a “sign of appeasement from Fosun” and a way for the CEO to prepare for his succession.

While Fosun does not wish for Henri Giscard d'Estaing’s departure, the leader’s age, as he approaches 68, prompts the shareholder to think about his succession.

For now, the man who has led Club Med since 1997 will be at the helm of the next strategic project to be launched in 2025, “Club Med 2030,” alongside marketing director Quentin Briard.

“In an uncertain macroeconomic and geopolitical environment, we must be agile and efficient to seize every opportunity, face numerous challenges, and strengthen our position as a French global champion,” said the CEO.

This governance clarification should enable the group to move forward in discussions with new partners as it seeks to open its capital.

Two candidates are in the running, and the operation should take place in the coming months, according to union sources.

According to BFM Business, CapitalLand, an investment fund based in Singapore and 40% owned by the sovereign wealth fund Temasek, is in the race, competing against a joint offer from the Luxembourg-based fund CVC and Bpifrance.

“Whatever the challenges of the process, Bpifrance will be part of the minority fund that takes a stake. (Club Med) is a French asset that must be led by a French person, and Bpifrance will ensure that,” a source close to the public bank told *Les Echos*.

When contacted by AFP, Bpifrance declined to comment on this information.


Source :AFP


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