France's BHV department store enters receivership to secure recovery plan

The Paris economic activities court (TAE) has approved a request by BHV Marais management to place the department store into receivership.

Known in France as redressement judiciaire, the court-supervised reorganisation procedure allows a business in financial difficulty to continue operating while it works towards recovery, rather than immediately entering liquidation.

BHV’s management and employees requested the move last week to secure the store’s recovery plan after agreements with its landlord were not fulfilled.

According to the press release, protection from the commercial court should very quickly finalise discussions with Brookfield, the property owner, which have been awaited for several months.

According to BHV Marais, cash flow issue explains administration

“These cash flow issues have undermined the best months of the year. We have a crucial period ahead of us,” said Karl Stéphane Cottendin. This comes as Brookfield disputes the enforceability of the compensation claimed.

Another industry figure to speak out on the matter is Yan Rivoallan, president of the Fédération Française du Prêt à Porter Féminin (FFPAPF), who demanded of BHV's former operator: “Frédéric Merlin, give the money back!”

He denounced the debts owed to brands, along with the consequences for their businesses and BHV employees. He also called for a buyer capable of relaunching the department store.

In the meantime, the store remains open, and the vision remains the same: a department store for the home and everyday life.

To succeed in this relaunch, the BHV teams are hard at work: “we need the commitment and support of everyone; our customers, the brands that care about BHV and have stood by us for months, the City of Paris, and all those who want French homeware savoir-faire to have its own department store in the heart of the capital.”s own department store in the heart of the capital.”