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BHV Marais in Paris applied for bankruptcy protection due to disputes over funding and payments, and continued to operate following the controversy over its collaboration with Shein, highlighting the plight of the French retail industry.
(Central News Agency, Paris, comprehensive foreign news report on the 27th) Last year, BHV Marais, a department store in the Marais district of Paris, France, had a dispute with Asian fast fashion giant Ziyin (sheen ) Collaboration led to controversy, the company said today it has filed a lawsuitbankruptcy Safety to protect operations and employee work.
BHV Marais is a historic department store located opposite Paris City Hall and has 700 employees, Agence France-Presse reported. The company said the bankruptcy proceedings are “part of BHV’s restart and does not mean it has failed” and that it would continue to operate.
The former owner of this departmental store basically had a dispute with the brand counters lodged by him due to delayed payments. Last year, it announced the opening of Shein’s first permanent physical store, which caused controversy.
This news touched the sensitive nerves of the French people. At the time, French society was concerned that the influx of imported goods from Asia would lead to the loss of local job opportunities and led many brands to withdraw.
The owner eventually sold the business to several company managers in June this year, and the new management team immediately ended cooperation with Sheen.
The new owner said that the transaction involves the transfer of part of the ownership of the building, but that they have not yet received the relevant payment, which is affecting the progress of the business restructuring plan.
The building’s owner, Canadian asset management company Brookfield, denied the claims and said it did not owe BHV Marais any money.
French labor inspectors believe that BHV Marais has failed to make relevant payments, but company management denies this claim.
Reuters reported that the plight of the BHV Marais highlights wider problems facing France’s retail industry, which is also being hit by anti-government protests across the country.
Data released earlier today by the French National Institute of Statistics and Economic Research (INSEE) showed that France’s consumer confidence index fell in October to its lowest level since June 2013.
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BHV Marais said the filing for bankruptcy protection is to protect daily operations and the jobs of its 700 employees, and does not represent a failure. The company expects the restructuring to be completed so that the department store can continue to operate in a “restart” manner.
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The department store announced the opening of Shein’s first permanent physical store last year, raising French concerns about the impact of low-priced Asian products on local employment. As a result, many brands withdrew and the collaboration became the focus of criticism from the outside world.
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In addition to payment disputes with the former owner, brand counters and labor inspection units, the new owner also alleged that it did not receive payments related to the transaction, which affected the reform plan; Brookfield denied that it owed the money and both sides had differing opinions.
