BHV Marais, the iconic Paris department store, has filed for redressement judiciaire (judicial recovery) to secure a revival plan and protect jobs amid serious financial distress.

SEGM BHV, which includes Bazar de l’Hôtel de Ville and BHV Parly 2, is entering a six-month observation period that can be renewed for another six months to assess recovery options, a buyer, or potential liquidation.

The Paris Commercial Court placed BHV Marais in redressement judiciaire, affecting SEGM BHV and its two sites, as part of the effort to stabilize the business.

The collapses are framed within a broader history of troubles and disputes that have contributed to the current crisis.

The decision follows cash-flow crises tied to disputes with Brookfield, the property owner, and a disputed interpretation of the company’s finances after a profitless sale earlier in the year.

Union leaders and employees have voiced a lack of confidence in management’s direction amid the takeover and ongoing restructuring.

Controversy over Shein’s involvement with the store has damaged its image and contributed to financial difficulties.

In June, the store was sold to a group of managers who then cut ties with Shein, taking partial ownership of the building; they await funds from the sale, a move the new owners say has not derailed their revamp plans.

Customers and longtime visitors describe BHV as an institution now facing a decline in prestige, quality, and vitality compared with its former status.

CEO Karl-Stéphane Cottendin blames the landlord for unpaid indemnities in exchange for surrendering more than half the store’s walls, funds deemed crucial to financing the revival plan.

Ongoing legal and business challenges, including conflicts with the landlord Brookfield over indemnities, are hampering stabilization and future investment.

About 700 employees work across BHV Marais and SEGM BHV, with the store remaining open during the judicial process to pursue a viable resolution.