Uncertainty Clouds Future of Iconic Parisian Department Store BHV business, fashion, fashion news

The future of the iconic Parisian department store Bazaar de l’Hôtel de Ville (BHV) hangs in the balance, as concerns mount over its financial stability and unpaid supplier invoices. While management maintains optimism about turning the tide, trade unions express alarm and call for transparency.

BHV, a beloved institution in the heart of Paris, has faced challenges in recent years, exacerbated by the COVID-19 pandemic and changing retail trends. Access difficulties and questions surrounding its target clientele have contributed to its struggles. In December 2023, Galeries Lafayette sold BHV to Société des Grands Magasins (SGM), a Lyon-based property company specializing in revitalizing struggling urban retail spaces. The move allowed Galeries Lafayette to focus on its core brand.

However, nine months into SGM’s ownership, concerns are mounting. Several suppliers have reported delayed or missing payments, raising fears of imminent bankruptcy. The CGT union issued a stark warning, highlighting the accumulation of unpaid bills and the potential for brands to withdraw their support.

Responding to these anxieties, joint trade unions representing BHV’s approximately 1,300 employees met with Paris City Hall officials on Thursday. They expressed frustration over the lack of transparency regarding the store’s financial situation and its potential impact on the surrounding district. Senator Ian Brossat, who attended the meeting, plans to present a motion on the issue at the next Paris Council meeting.

SGM owner Frédéric Merlin defended the company’s efforts, stating that BHV has been losing 15 million euros annually for years but emphasized their commitment to restoring profitability. He attributed supplier payment delays to temporary issues with invoice management systems, assuring that the situation is being addressed. He also minimized the scope of the problem, stating that only a small fraction of suppliers are experiencing delivery issues.

Paris City Hall officials plan to engage with both SGM and Galeries Lafayette to discuss the situation and explore potential solutions.

The fate of BHV remains uncertain. While SGM expresses confidence in its ability to turn the tide, anxieties persist among employees and suppliers. The coming months will be crucial as stakeholders work to ensure the continued existence of this Parisian landmark.