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The code I suggested?

gedit filename
echo "Editor has now quit"

Have you tried my suggestion of not putting gedit in the background at all?

Have you tried just wait rather than wait $PID? Or how about not putting it into the background at all:

gedit "$1"
echo "Editing now finished"

If you run the program in foreground instead of background, your program can simply wait for it instead of polling.

If you run it in background, you can save its PID with PID="$!" and poll for...