BHV's financial state revealed

The Parisian department store BHV has been found to have over 120 million euros in debts, with less than 1.5 million euros in cash reserves, according to an audit by EY cited by Libération. This financial situation has led to discussions about a payment stop, a legal status indicating a company is unable to meet its financial obligations.

Debt breakdown and obligations

The debts include over 100 million euros owed to suppliers, with more than 40 million euros specifically owed to former owners and managers of Galeries Lafayette. Additional debts include 10 million euros in social obligations and over 2 million euros in taxes, highlighting the severity of the financial crisis.

Management's conflicting statements

The management previously claimed the department store had not reached a payment stop, but the audit confirmed the company was in this state as of August 31. This contradiction has raised concerns about the transparency of the company’s financial situation and its leadership.

Request for judicial restructuring

Karl-Stéphane Cottendin, the current head of the company, has requested judicial restructuring to continue the store's recovery and protect jobs. This comes after the company's annual turnover has dropped significantly, from 170 million euros in 2025 to just 20 million euros this year.

Choice of Lyon court and strategy

Despite the BHV Marais being located in Paris, the company's headquarters was moved to Lyon in February. This decision has raised questions about the appropriate court jurisdiction and the management's strategic choices, suggesting potential familiarity with local legal processes.

Legal actions and past ties

The Paris prosecutor's office was informed in mid-July about the alleged payment stop by the labor inspection. This follows the departure of Frédéric Merlin, a former head of the Society of Department Stores, who sold the BHV Marais to Cottendin at a loss. Both men remain connected to the situation.

Dispute with Brookfield

Cottendin accuses Brookfield, the Canadian fund that owns the department store's premises, of failing to meet financial commitments. Brookfield denies this, claiming it has no debts to BHV and instead points to unmet obligations from the store's operator.

Future uncertain for employees

The future of the BHV now hinges on court decisions, with a hearing scheduled in Paris. Around 700 employees remain employed and are awaiting clarity on their job security and the store's future.