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BHV Marais Seeks Court Protection Amid Dispute With Landlord Brookfield

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BHV Marais Seeks Court Protection Amid Dispute With Landlord Brookfield

The department store filed for judicial reorganization as new CEO Karl-Stéphane Cottendin said missing compensation linked to the return of floor space caused a cash crunch that impacted its recovery plan.

PARIS – Less than a year after the splashy – and much criticized – debut of Shein within its doors, historic Paris department store BHV has filed for court protection and reorganization, as cash-flow difficulties threaten its turnaround plan.

The news, first reported by Le Figaro, comes after a change of hands in June.

Chief executive officer Karl-Stéphane Cottendin, who acquired the business with a recovery plan alongside three other executives just five months ago, said that the procedure was a strategic step intended to support the retailer’s restructuring and preserve jobs.

“Judicial reorganization is a technical framework: it is a strategic step in the restructuring plan, a considered decision that forms part of the life and recovery of the company. BHV is 170 years old; it has weathered many other storms, and it will weather this one,” Cottendin said in a statement.

“What this store lacks today is the cash flow it is owed,” he added.

The company said the store will remain open and its management team will continue to lead the recovery plan, as the crucial holiday season looms. Cottendin said that “every week counts,” arguing that the retailer has “everything it needs to succeed.”

The latest dispute centers on Canadian investment firm Brookfield, which acquired the BHV building in January from former owners Galeries Lafayette .


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