Paris department store BHV placed under judicial reorganisation proceedings

Court opens restructuring procedure

On Monday, 2 November 2026, the Paris commercial court opened a judicial reorganisation procedure for SEGM BHV, which runs the Bazar de l'Hôtel de Ville, a store that has stood in central Paris for 170 years, and a second site. According to a document seen by AFP, that second site is BHV Parly 2 in a shopping centre in the Yvelines. The company employs 700 people, based on September data. The procedure opens an observation period of six months, renewable for another six months, during which the court studies whether the business can be rescued. When that period ends, the court may approve a recovery plan, approve a disposal plan or order liquidation.

Cash shortfall and a landlord dispute

The store was sold at a loss in June by SGM, the company led by Frédéric Merlin, and BFMTV reports that the buyers included some of its executives. Over the summer, management unveiled a recovery plan meant to put the company back on its feet, but the plan ran into a shortage of cash. Management blames part of that shortfall on a dispute with Brookfield, the Canadian fund that owns the buildings, a claim Brookfield firmly rejects. The store had already faced accusations of failing to pay its suppliers and public criticism over a controversial partnership with Shein, the Asian online fashion site.

Insolvency admitted and staff position

In the week of 26 October 2026, management admitted that the company was bankrupt and said it had requested the procedure to "preserve activity and employment" and "secure its recovery plan". Until then the company had still denied being in cessation of payments. Both management and staff representatives had asked for the procedure before the court ruled. Staff representatives said they wanted to inform employees first before speaking publicly.

Management response and next steps

In a statement issued on Monday, SEGM BHV welcomed the court's decision and said the store would remain open. The company argued that the court's protection should quickly move its talks forward.

“The protection of the commercial court should quickly allow us to turn discussions with Brookfield, owner of the walls, into concrete results, which we have awaited for several months.”

Company president Karl-Stéphane Cottendin, cited in the same statement, linked the cash problems to the damage they caused in the year's strongest trading months.

“These cash issues hit the best months of the year. We now face a crucial period.”

The next formal milestone is the end of the six-month observation period, which can be extended by another six months.