The key facts

  • Paris court opened an administrative procedure for SEGM BHV with a six-month observation period
  • The department store will continue operating, and 700 employees will retain their jobs
  • Management links the procedure to a payment dispute with building owner Brookfield

Court grants protection from creditors

On Monday, the Paris court opened an administrative procedure against SEGM BHV, which includes the historic department store opposite the Paris City Hall and a store west of the capital. According to AFP, citing court documents,. The procedure includes a six-month observation period, extendable by another six months, during which the company's recovery potential will be assessed. The request for protection was filed last week as part of a relaunch of BHV, whose department store has operated in central Paris for approximately 170 years. Management stated that it welcomes the court's decision.

Dispute with the building owner

The company stated that the court protection should very quickly allow concluding discussions with Brookfield, the property owner we have been waiting for for several months. According to AFP, the department store will continue operating, and its 700 employees will retain their jobs. However, the parties disagree on assessments: new owners claim that part of the building was transferred to them upon the sale of the business, but they have not yet received the funds, complicating plans to renovate the store. Canadian asset manager Brookfield rejected this claim, stating it has no outstanding debt to BHV Marais. French labor inspectors, according to AFP, believe the department store is not making payments, which management denies.

Context: conflict surrounding Shein

The previous owner already faced problems with tenant brands due to payment delays and caused a scandal last year by announcing that the first permanent physical store of the Asian fast-fashion giant Shein would open in BHV Marais. The decision sparked controversy in France amid concerns about the disappearance of local jobs due to the influx of Asian imports, leading several brands to leave the department store. In June, the previous owner sold the business to several of its managers, who immediately terminated cooperation with Shein. The creditor protection became the next step for the new owners, while the key payment dispute with Brookfield remains unresolved.