Shein’s Impact: Brands Exit as Freehold Plans Face Crisis

Isabella Laurent
13 Min Read

Turmoil at BHV Marais: Shein‘s Arrival Sparks Outrage Among Brands

Published
October 5, 2025

The historic BHV Marais department store in Paris is facing a significant backlash from its brand partners following the announcement that fast-fashion giant Shein will occupy a substantial space within the store starting in November. This decision has intensified existing tensions between the store’s management and its suppliers, many of whom have been grappling with unpaid invoices for months.

A Legacy in Crisis

Founded in 1856, BHV Marais has long been a staple of Parisian retail, known for its eclectic mix of brands and products. However, the store’s recent management changes have raised concerns about its financial stability. In 2023, the Merlin family’s Société des Grands Magasins (SGM) acquired BHV from the Galeries Lafayette group, a move that has not been without its challenges. Reports indicate that the store has accumulated over €7 million in unpaid invoices, a situation that has left many brands feeling disillusioned and frustrated.

Until recently, the discontent among brands was largely kept under wraps. However, a poorly executed email from the sales department in mid-September inadvertently exposed the growing unrest. This prompted several brands to unite and voice their grievances, leading to a collective decision to withdraw from the store.

The Shein Controversy

The announcement of Shein’s entry into BHV has been a tipping point. The fast-fashion retailer is set to occupy over 1,000 square meters on the sixth floor, a move that has been met with widespread condemnation from many French brands. Guillaume Gibault, founder of the underwear brand Le Slip Français, expressed his disappointment, stating, “We had decided a few days before the announcement to end our presence at BHV. The problem is that since the takeover, we’ve been dealing with unpaid invoices.”

Gibault’s sentiments reflect a broader sentiment among brands that feel their values are at odds with Shein’s business model, which is often criticized for promoting unsustainable fashion practices. The influx of Shein’s fast-fashion offerings is seen as a direct threat to the integrity of the brands that prioritize quality and sustainability.

Unpaid Invoices: A Systemic Issue

The financial difficulties at BHV are not isolated incidents but rather indicative of a systemic issue within the department store. Many brands have reported that they have been forced to chase payments for their sales, with some amounts owed reaching as high as €100,000. Guillaume Alcan, founder of the Odaje brand, noted that despite BHV’s promises of payment plans, these commitments were rarely honored.

Xavier Martin, who has been working to relaunch the lingerie brand Maison Lejaby, echoed these concerns, stating, “If the unpaid invoices are intentional, then this practice is purely dishonest.” He emphasized that the management’s failure to address these issues reflects a lack of respect for their suppliers.

The Response from BHV Management

In response to the mounting criticism, BHV management has attempted to reassure brands and suppliers that they are addressing the financial issues. They attribute the unpaid invoices to an IT problem that they claim will be resolved soon. However, many brands remain skeptical, citing a lack of transparency and communication from the management.

Frédéric Merlin, a representative of SGM, defended the decision to bring Shein into the store, arguing that it would attract a larger customer base. He stated that some existing brands have welcomed Shein’s arrival, although this claim has been met with skepticism from many in the industry.

A Shift in Retail Dynamics

The decision to partner with Shein has broader implications for the retail landscape in Paris. The arrival of fast fashion in a historic department store raises questions about the future of sustainable fashion and the values that underpin the industry. Many brands, like AIME, have publicly declared their intention to withdraw from BHV in protest, emphasizing the need for a more responsible approach to fashion.

Antoine Tinel, from the retail agency The Lifestyle Company, noted that the announcement of Shein’s arrival confirmed their decision to cease new seasons at BHV. This sentiment is echoed by numerous brands that feel their commitment to quality and sustainability is being undermined by the fast-fashion giant.

The Financial Stakes

The financial implications of this partnership extend beyond the immediate concerns of unpaid invoices. SGM is currently in negotiations to secure a bank financing package to purchase the BHV premises, a deal that could be jeopardized by the association with Shein. The Banque des Territoires, a public financing entity, has expressed reservations about supporting a project that aligns with fast fashion, emphasizing its commitment to sustainable and responsible retail practices.

MPs Olivia Grégoire and Antoine Vermorel-Marques have also weighed in, urging the government to expedite the establishment of a joint committee to address the challenges posed by fast fashion. Grégoire has been vocal in her criticism, stating, “Welcoming Shein into our department stores is a betrayal of the heritage of our couturiers and a denial of our history.”

Conclusion: A Pivotal Moment for BHV Marais

As BHV Marais navigates this tumultuous period, the stakes are high for both the management and the brands that have long been associated with the store. The decision to partner with Shein may attract a new customer base, but it risks alienating established brands that prioritize ethical practices. The future of BHV hangs in the balance, as it grapples with the consequences of its choices in a rapidly evolving retail landscape. The coming months will be crucial in determining whether the department store can reconcile its legacy with the demands of modern retail.

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Isabella Laurent is a fashion editor focusing on global fashion weeks, couture, and sustainable style. She blends luxury trendspotting with a passion for ethical fashion.
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