Paris court places BHV Marais department store under bankruptcy protection
The 170-year-old store opposite Paris City Hall, which drew criticism last year for hosting Shein, enters a six-month observation period; its operator employs 660 people.
A Paris commercial court on Monday granted bankruptcy protection to SEGM BHV, operator of the BHV Marais department store that has stood opposite Paris City Hall for around 170 years, AFP reported.
Why
- According to a court document seen by AFP, the retailer is insolvent “notably due to a significant drop in turnover, excessive liabilities and disputes with the landlord”.
- SEGM BHV, which also runs a second store west of Paris, employs 660 people. Last year it posted a net loss of €1.85 million on revenue of €170.3 million.
- Both management and trade unions had asked for the procedure; unions said the company could no longer make payments, which management disputed.
What happens now
The court-supervised restructuring opens a six-month observation period, renewable for another six months, to assess whether the business can be turned around. Management said it welcomed the decision and hoped it would let it quickly finish talks with property owner Brookfield.
Last year BHV caused an outcry by announcing it would host Shein’s first permanent physical store, which prompted several brands to leave the store.
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