A Paris court has placed the operator of department store BHV Marais under court-supervised restructuring, giving it time to pursue recovery as a disputed payment from landlord Brookfield remains unresolved.
The Paris Economic Activities Court opened proceedings Monday, Nov. 2, for SEGM BHV, operator of Bazar de l’Hôtel de Ville in central Paris and BHV Parly 2 in Yvelines, AFP reported, citing a court document it had consulted. AFP reported that the Paris flagship has operated for about 170 years.
SEGM BHV sought the proceeding the previous week to protect its operations and jobs while pursuing a relaunch, France 24 reported. Management said BHV would remain open.
The relaunch plan is tied in part to compensation for returning more than half of the store space to Brookfield in the spring, according to BHV. The company says the payment was not made and that the missing funds hindered restocking and renovation work. Brookfield denies owing the money, saying payment is due only after the spaces are returned in the condition required by the lease, AFP reported.
The French Commercial Code allows an initial observation period of up to six months, renewable once for up to six more months. During that period, the court can assess whether the business can continue or should be transferred. Liquidation is also possible if recovery is not viable. The court-supervised observation period is the next stage of the proceeding.
