The French department store group SGM, the operator of the iconic BHV, is facing turbulence after its recent alliance with Chinese fast-fashion giant Shein. This partnership has weakened SGM’s standing in the market, prompting Banque des territoires, a prominent investment bank, to halt negotiations over acquiring SGM’s property assets.
SGM’s Strategic Move Backfires
SGM’s decision to collaborate with Shein aimed to attract a younger, style-conscious audience. However, this move raised concerns among investors and stakeholders. Many worried about the impact of Shein’s controversial fast-fashion practices and the potential damage to the department store’s reputation. 
Banque des territoires Pulls Out
As a result of the backlash, Banque des territoires ended talks to buy SGM’s valuable real estate holdings. This withdrawal marks a significant financial and strategic blow to SGM, casting doubt on its future plans and recovery strategy. The episode highlights the risks traditional retailers face when partnering with controversial fast-fashion brands.
Sources:
FashionUnited
