What: BHV Marais faces backlash and financial uncertainty after announcing a partnership with Shein, leading to the withdrawal of key investors and brands.

Why it is important: The situation demonstrates how political and ethical considerations can directly influence retail investment and operational decisions.

BHV Marais, a historic Parisian department store, has entered a period of turmoil following its partnership with fast-fashion giant Shein. The announcement of Shein’s upcoming permanent presence at BHV Marais and several Galeries Lafayette stores triggered immediate backlash from both the public and the retail sector. The Banque des territoires, a major institutional investor, withdrew from ongoing negotiations to acquire the building’s real estate, citing a breach of trust and misalignment with its values. This move was accompanied by strong political and industry criticism, with several French brands deciding to exit the store in protest. The SGM, current owner of BHV’s business, insists the real estate project will proceed with other partners, despite mounting financial difficulties and delayed payments to suppliers. The controversy underscores the operational, reputational, and financial risks that arise when legacy retailers align with disruptive, ethically contentious brands, and highlights the growing influence of political and ethical factors in shaping retail partnerships and investment decision.

IADS Notes: The controversy surrounding Shein’s entry into BHV Marais, as reported by Inside Retail in October 2025, exemplifies the operational and reputational risks that arise when historic department stores partner with disruptive fast-fashion brands. Staff protests and the withdrawal of several French brands underscore the internal and external backlash triggered by such alliances. This mirrors the broader sectoral resistance seen in Galeries Lafayette’s decision to block Shein’s entry into SGM-affiliated stores (Fashion Network, October 2025) and Pimkie’s expulsion from French retail associations after its Shein partnership (Fashion Network, September 2025). The situation is further complicated by the role of institutional investors like Banque des Territoires, whose withdrawal from the BHV property deal highlights how political and ethical considerations can directly impact retail real estate strategies (Fashion Network, June 2025). Meanwhile, SGM’s ongoing efforts to secure alternative partners and refinance its assets (Fashion Network, June 2025) reflect the financial and strategic challenges facing legacy department stores as they seek to modernize while maintaining brand relationships and stability. These developments collectively illustrate the heightened scrutiny, regulatory pressure, and complex stakeholder dynamics now shaping the future of department store retail in France.

SGM loses public funding to buy the BHV real estate over the Shein feud