Overview
- SGM said on Tuesday that it sold the BHV Marais flagship at a loss to a group of executives that includes outgoing CEO Karl-Stephane Cottendin, who will step down.
- The company said the sale ends its cooperation with Shein at the Paris store and that the e-commerce group would 'ideally' leave the site by Christmas.
- SGM will keep seven other BHV locations and has pledged to honour contractual commitments at non-Paris stores while it conducts a long-term review of the partnership.
- The decision follows months of reputational pressure after Shein opened a permanent shop in BHV Marais, about 100 brands left the store, and social-media footage showed largely empty floors.
- French regulators recently fined Shein more than €22 million for traceability, environmental labelling and delivery breaches, bringing total French penalties above €210 million and intensifying scrutiny of the fast-fashion model.