The historic Parisian department store BHV has been officially placed in judicial recovery following a ruling by the Paris Economic Activities Court. The decision, announced on November 2, accepts a request filed by the store just last week, marking a significant development for the company which has faced prolonged difficulties. The procedure applies to SEGM BHV, the entity that manages both the original Bazar de l'Hôtel de Ville in central Paris and the BHV Parly 2 location in the Yvelines region.
This judicial recovery opens an initial six-month observation period, which can be extended for another six months. During this time, authorities will assess whether the company can be restructured. At the end of this phase, the court may authorize a recovery plan allowing continued operations, approve a sale to a new buyer, or order the liquidation of the company. The store employs approximately 700 people according to data from September.
The move comes after the chain was sold at a loss in June by entrepreneur Frédéric Merlin's SGM group. Since then, the business has encountered significant turbulence. Earlier this summer, management unveiled a revival plan that ultimately failed due to a lack of liquidity. The store's leadership attributes this cash flow crisis partly to a dispute with Brookfield, the Canadian fund that owns the building, though Brookfield strongly contests this version of events.
In response to the court's decision, BHV management stated they welcome the ruling and expect it to facilitate ongoing discussions with Brookfield regarding the property ownership. Karl-Stéphane Cottendin, the company president, emphasized that the store will remain open despite the critical period ahead caused by liquidity issues affecting peak sales months. Both management and staff representatives had requested this judicial protection. The store has recently faced accusations of failing to pay suppliers and criticism over a partnership with the online fashion retailer Shein.
Sources: Le Figaro.