PARIS (Reuters) – Galeries Lafayette announced on Thursday that it had entered into exclusive negotiations with the SGM Group with a view to selling it the Parisian store BHV Marais, which the company has owned since 1991.
The operation would relate to the walls and the goodwill of the emblematic store located in the Marais district, near the town hall of Paris, specify the Galeries Lafayette in a press release.
Seven stores of the Galeries Lafayette network located in large French provincial towns have been affiliated since 2021 with SGM (Société des Grands Magasins), a family business specializing in large city center retail, the press release recalls.
Galeries Lafayette stresses that the proposed sale of BHV Marais, which also includes the Parly 2 store and which remains subject to the approval of the Competition Authority, is part of the “profound transformation of their model “engaged for several years.
“The project envisaged today would allow the company to concentrate its efforts and available resources on its eponymous brand, to reconstitute its cash flow following the impact suffered by the full force of the Covid crisis, and to accelerate the deployment of its priorities,” the statement said.
(Written by Tangi Salaün, Editing by Kate Entringer)
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