Report Breakages, delays and payment delays… “We’ve never experienced anything like this”, warn BHV employees, worried about the survival of the emblematic Parisian department store

Can you still find everything at BHV, as the slogan says? It seems that something is wrong within one of France’s iconic department stores. Employees at the legendary Bazar de l’Hôtel de Ville in Paris are worried about the store’s survival.

Less than a year after the acquisition, in November 2023 at the Galeries Lafayette of the store by SGM (Société des grands magasins), a small Lyon real estate company specializing in the rehabilitation of shopping centers. A meeting of the CSEC, the Central Social and Economic Committee, is scheduled for Friday 13 september.

The inter-union has launched a right of alert to demand accountability from management on the financial health of the store. According to revelations from Médiapart confirmed to franceinfo, some suppliers have not been paid for several months and brands are threatening to withdraw. This is a completely unprecedented situation.

In the department store aisles, there are empty shelves on every floor. Entire spaces are closed off by black screens. Ludivine is a saleswoman for a kitchen brand, she has had delivery problems since last spring. “My boss stopped deliveries due to unpaid bills, that’s why we have shortages in certain brands. So we’re waiting, we don’t know, she explains. We are waiting. I have been here for ten years, we have never experienced anything like this.”

Many stores buy their own goods from suppliers. But when customers pay, BHV pockets the money and then reimburses the stores. The amount is deducted from the rent for their location.

“We lie all the time and say that there are delays.”

a saleswoman from BHV

to franceinfo

Except that since the arrival of the new owner, the late payments have been piling up. This manager of a furniture stand has already lost about fifteen customers, she must reimburse 130 000 euros. “There are people who go crazy, she said, because they put a lot of money and then they don’t know where their merchandise is. They lie, they say it’s at customs. I have a meeting in two weeks, we might have an economic layoff.”

The unions fear major cash flow problems within the Société des grands magasins, the new owner of BHV. An argument dismissed by the president of SGM, Frederic Merlin: “I readily acknowledge that there are payment deadlines that are longer than those used by Galeries Lafayette, the brand to which BHV belonged. We still work with Galeries Lafayette’s tools and so we have a system of double control of these invoices. And inevitably, we have payment deadlines that are longer. There are 1 000 supplier to BHV. If there are ten or so suppliers who are affected by these issues, that’s the maximum.”

“BHV was capitalized at 38 million euros. They lose 15 million euros per year. That means we could assume two and a half years of losses at BHV.”

Frédéric Merlin, President of the SGM

to franceinfo

Frédéric Merlin adds that the bet of financial balance will be kept before the end of the year. For their part, the unions are waiting for explanations during the meeting of the Central Social and Economic Committee on Friday. If they are not convinced, they will mandate an expert to examine the company’s accounts in detail.