The situation has since been resolved for the entrepreneur, but her post sent shockwaves through the community. In response to her message, a series of suppliers also voiced their concerns on the same social network. “BHV must quickly stop this kind of behavior, or it will lose all credibility with its suppliers,” said Bernard Vanderschooten, head of a home linen group. “For the past year, I’ve spent more time chasing payments than managing my teams at the corner,” added Christophe Verley, head of Serge Lesage, a carpet specialist. Cédric Stirling, co-founder of the jewelry brand Gemstar Brands, further emphasized, “Since November 2024, our brand has had a permanent corner at BHV, and to this day, we have not received a single payment.“
A long-time supplier of BHV observed, “All suppliers are starting to wake up.” For this merchant, who has been at the grand store on Rue de Rivoli in Paris for years, the problem started with the arrival of Frédéric Merlin at the helm. As early as summer 2024, Mediapart had reported unpaid dues by BHV. The anonymous source even initiated a summary proceeding for the tens of thousands of euros in damages left by the SGM. “We will seize the missing funds as soon as possible, because we think there won’t be enough for everyone,” he acknowledged, noting the growing awareness among suppliers.
While several brands have reported receiving transfers in recent days, the payments are still sporadic and disorganized. Some are frustrated. “These non-payments are a way to show sufficient cash flow to the Banque des territoires,” pointed out Frank Halard, head of the wallpaper brand Au fil des couleurs, present at BHV for ten years. “The SGM is taking 100% of our sales instead of a 20% commission!” Despite his company’s size (6 million euros in revenue), the entrepreneur explained that he had to close his corner at BHV, resulting in the layoff of three people, due to an unpaid 80,000 euros. “And I’m giving up half a million in sales by closing my concession,” he sighed. For some large suppliers, the backlog is in the hundreds of thousands of euros. “I think the SGM is holding off payments while dealing with the Caisse des dépôts (CDC) and the Banque des territoires,” hoped a supplier who recounts receiving a new payment promise from BHV each month, never finalized. “Once the purchase of the premises is settled, they will pay us,” he hoped.
In the meantime, the impact on the staff is tangible, explained an employee: “On all floors, shelves are more or less empty. Customers come asking for an item. We lie to them because we don’t know when we will be restocked; these are unbearable situations.” And the long-time BHV employee described: “On the 2nd floor, the frames department is empty. In stationery, there are no pens. On the 4th floor, we had one of the best curtain rod sales points: it is empty!” In May, however, Frédéric Merlin assured Challenges that the understocking was only around 4%.
An insufficient explanation internally. Last week, the unions – CFDT, CFTC, CFE-CGC, CGT, Sud – distributed a leaflet. They denounced various issues: “products are missing, and the store’s image is collapsing;” “customers are getting upset, and it’s the employees who suffer their dissatisfaction;” “our workload is exploding;” “some brands have already left the store;” “we are being pushed to the limit.” The leaflet also attacked a project to extend the store’s hours. The union concluded: “Silence is no longer an option. Nor is inaction.“
A source close to the case believes that Frédéric Merlin’s method is primarily a way to quickly renew the store’s offerings. By pushing brands out (by not paying them), he allows new players to take their place, including larger concessions, thus moving closer to what the SGM knows best: shopping centers. The challenge for the executive is to strengthen profitability, as his EBITDA (excluding head office expenses) was already back in the black in 2024.
