Galeries Lafayette Finalizes Sale of BHV Building Amid Shein Controversy

Galeries Lafayette is finally getting rid of the building of the Parisian department store BHV Marais. The deal comes in the midst of controversy over the installation of Shein’s first permanent store in the country, according to WWD. The terms of the deal have not been disclosed, but the property is valued at €300 million.

Initially, Société des Grands Magasins (SGM) was listed as the main buyer option, although it was discarded. According to the latest information, it could be Brookfield Asset Management, a Canadian asset manager, who will take over the building, according to AFP. The SGM group will continue to manage the property under the new ownership structure.

SGM’s decision to take in the Asian ultra-fashion giant has sparked protests among traditional operators in the luxury industry. The move caused the departure of Dior, Sandro, Maje, Agnès B. and Rive Droite, among others.

Galeries Lafayette agreed to end its agreement with SGM last year, fleeing a reputational crisis

Galeries Lafayette decided to end its agreement with SGM in November last year, withdrawing its brand from seven regional department stores of the same name operated by this company in France following the arrival of Shein.

This was confirmed by Galeries Lafayette through an official statement sent on Tuesday, notifying the agreement to terminate the affiliation contracts in force since 2021. The move allowed the French group to distance itself from the stores’ reputational crisis.

Weeks later, Galeries Lafayette put the property up for sale, after exhausting the timetable agreed in 2023, when Galeries Lafayette sold the BHV business to SGM. That agreement stipulated that the new owner of the department store had until the end of 2025 to buy the building as well, with the expiration date set for December 19th.