Iconic Paris department store BHV Marais granted bankruptcy protection
Summary
A Paris court granted bankruptcy protection to SEGM BHV, the company that operates BHV Marais and another store west of Paris. The court-supervised process gives the company six months, with a possible six-month extension, to assess whether it can be restructured; BHV said its stores would remain open.Key Facts
- SEGM BHV employs 660 people.
- The company reported a net loss of €1.85 million on revenue of €170.3 million last year.
- The court document cited falling sales, excessive liabilities and disputes with the landlord as reasons for the company's insolvency.
- Management and trade unions both asked the court for bankruptcy protection, though management disputed the unions' claim that the company could not make payments.
- BHV said court protection could help it complete discussions with building owner Brookfield.
- Brookfield denied that it owed BHV any outstanding funds.
- BHV ended its partnership with Shein in June, after the fast-fashion company opened a permanent shop in the flagship store the previous November.
- Union representatives said they would use the process to push for a takeover, while the Paris deputy mayor for employment said he would urge Brookfield to support a viable business plan.
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