French department store BHV Marais will end its partnership with Shein after its operating company said Tuesday it was selling the Paris outlet, following criticism of its deal with the Asian e-commerce giant.
The announcement comes after Shein in November opened its first permanent physical shop in BHV's flagship store, a move that sparked outcry over the brand's fast-fashion business model and environmental impact.
SGM, which has operated the landmark store opposite Paris City Hall since 2023, has sold it at a loss to a group of executives, including outgoing SGM CEO Karl-Stephane Cottendin, the two parties told reporters.
Cottendin, who will step down as SGM's chief executive following the deal, said Shein would "ideally" leave the store by Christmas, describing the decision to allow the retailer to open in BHV as a "strategic error".
A second BHV store west of Paris will also come under new management, while SGM will retain control of seven other locations, five of which have welcomed Shein this year.
Contractual commitments with Shein at the non-Paris stores will be "honored" pending a "long-term" review, SGM director Frederic Merlin said.
Merlin acknowledged having made "mistakes", adding that the sale of BHV was a "genuine plan for an effective takeover by serious people".
Founded in China in 2012 and now based in Singapore, Shein has faced criticism in several countries over working conditions at its suppliers and the environmental impact of its ultra-fast-fashion business model.
Around 100 brands left the BHV Marais following Shein's arrival, with management saying it was either over opposition to the Asian brand or over unpaid invoices linked to IT systems.
Earlier this month, France said it imposed two fines on Shein totaling more than 22 million euros ($26 million), citing problems with product traceability, environmental labelling and delivery times.
The penalties bring the total fines imposed by France against the Asian fashion giant to more than 210 million euros.
