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Storied Paris department store seeks bankruptcy protection / Photo: JOEL SAGET - AFP/File
Storied Paris department store seeks bankruptcy protection
Paris department store BHV Marais, which courted controversy last year with a partnership with Asian fast-fashion giant Shein, said Tuesday it had sought bankruptcy protection to protect its operations and jobs.
The bankruptcy procedure "is part of BHV's relaunch, not its failure," the company said, adding that the landmark store opposite Paris City Hall that employs 700 people will remain open.
The store's previous owner already had problems with brand-name boutiques it hosted over payment delays before it sparked controversy last year by announcing that BHV Marais would host Shein's first physical permanent store.
The announcement struck a raw nerve in a French public concerned about the disappearance of local jobs amid a flood of Asian imports, and triggered the departure of a number of brands.
The owner finally sold the business to a number of its managers in June, who promptly parted ways with Shein.
The new owners said that as part of that deal the ownership of part of the building was transferred, but they had yet to receive the funds, which adversely impacted their plans to revamp the business.
The owner of the building, the Canadian asset manager Brookfield, rejected that assertion, saying it does not have any outstanding sums due to BHV Marais.
French labour inspectors believe that BHV Marais has not been making payments, which its management has denied.
(C.Young--TAG)
