1997 to the present: The Law of Economics

Closures, profitability and takeover bids

The board of directors, at its meeting of February 21, 1997, acknowledged the group's disastrous results (743 million francs in losses during the 1996 fiscal year) and the conclusions of an audit commissioned from an American firm and clumsily published. The directors decided to amend the company's articles of association. Serge Trigano lost his operational management of the Club and was appointed chairman of the supervisory board, an honorary position with no real power. Philippe Bourguignon, former CEO of Eurodisney, was appointed head of the executive board.

On July 17, 1997, Serge Trigano left the Club. This date marks the end of an era. The story that followed would be different.

Philippe Bourguignon's objective was to bring Club Med back into the black. An ambitious but risky transformation plan was implemented. This began with cost-cutting measures. Buffets were scaled back, a far cry from the opulence of previous years. Budgets were reduced, and the resorts tightened their belts. Club Med One was sold. Ideas were tested to attract a younger clientele. Oyyo, Bysatis, and the two Club Med World resorts in Paris and Montreal were opened. The initiative would not be very successful or would prove to be a financial disaster. Simultaneously, Club Med acquired the tour operator Jet Tours for 485 million francs.

In December 2002, following poor results (70 million euros in losses), the Agnelli family once again shook up the Club Med management. Philippe Bourguignon was dismissed and replaced by his right-hand man, Henri Giscard d'Estaing. HGE, as everyone called him, implemented a policy aimed at eliminating the numerous sources of losses and began moving the brand upmarket. The bungalow villages were abandoned one by one, the unprofitable 2-Trident resorts were closed and sometimes sold, if buyers were available, to clubs like the MMV group. Village sales were also carried out. The new owners took charge of the renovation work, and the Club Med became the operator (Les Boucaniers is one example). The Oyyo and Byssatis ventures also came to an end, and the Club Med World resorts in Montreal and then Paris disappeared. Jet Tours was sold to Thomas Cook in 2008.

At the same time, other resorts opened, such as Palmyre Atlantique, Palmeraie and Riad in Marrakech, and Plantation d'Albion in Mauritius. The Club even established a presence in China with three resorts. Most of the new resorts were upscale, offering integrated 5-Trident spaces and even villas.

On the surface, as you've probably gathered, Club Med is now targeting an upscale clientele, but behind the scenes, a different game is being played. Capital is changing hands, and shareholders are playing musical chairs.

Until 2004, the Agnelli family (Fiat Group) held more than 20% of Club Med's capital. Following Giovanni Agnelli's death, the group withdrew and sold its shares to the French hotel group Accor. Accor remained the majority shareholder for two years before reducing its stake in 2006.

The arrival of the Chinese company "Fosun"

On June 13, 2010, the Chinese group Fosun gradually entered the fray. Fosun, backed by the Axa group (Gallion Invest 2), made a significant move on May 27, 2013, by launching a public takeover bid for Club Med.
A battle of offers and counter-offers then ensued between Fosun/Axa (Gallion Invest II) on one side, and on the other, the Italian group Bonomi, also interested and supported by Serge Trigano and KKR, shaking up both Club Med and the stock markets.

On February 9, 2015, after two years of often fierce competition, making this takeover bid the longest ever, the Chinese group Fosun won following the withdrawal of the Bonomi group. End of Act 3!

Here is the list of the Club's main shareholders in 2015 following the Gaillon Invest II takeover bid

The tent villages, the bungalows, the sixties and seventies atmosphere, the informal address, the bar necklaces, and the sun-kissed faces are now relegated to the realm of memories, but the club remains Club Med. New customers are discovering this, and for veterans like myself, Club Méditerranée, or Club Med, will always be remembered.