Last week we covered two companies asking for protection, one from a French court and one from an Italian one. By Monday evening there were answers in both cases, and neither was what the managers had argued for. The courts and the buyers moved faster than anyone in fashion. This is Fashion Business Daily for Tuesday, November 3, with three stories. A Paris commercial court grants BHV Marais bankruptcy protection, and the court document describes the retailer as insolvent. Style Capital buys Alessandro Dell'Acqua's label N°21, and its old industrial partner Gilmar exits. And in Australia, the Financial Review reports that David Jones's owner is in advanced talks with landlords about closing more than half its stores. One tap on follow, and we'll be back in your ears before you know it.
France 24, reporting with AFP from a court document:
The retailer "is in a state of insolvency, notably due to a significant drop in turnover, excessive liabilities and disputes with the landlord", the document said.
We covered the filing last Wednesday. On Monday, November 2, the Paris court granted bankruptcy protection to SEGM BHV, the operating company for the store opposite City Hall and another west of the capital. That answers one question we flagged: earlier reports disagreed on whether the case was in Paris or Lyon, and AFP's court document says Paris. The procedure gives a six-month observation period, which can be renewed for another six, to decide whether the business can be turned around. And the word insolvent is right there in the court document. Last week management was saying it wasn't. That's the change. Management and the trade unions both asked for protection, but for different reasons. The unions said the company couldn't make its payments, and management disputed that. The court document reads closer to the unions' version. The reported figures are smaller than you'd expect for a landmark: SEGM BHV says it has 660 employees and lost 1.85 million euros last year on revenue of 170.3 million. A loss of about one percent of revenue doesn't sink a store. The court points instead to falling turnover, too much debt, and the fight with the landlord. Which is Brookfield. Management says it handed back part of the building and never got paid for it. Brookfield says it doesn't owe them anything. Both sides are standing by those positions. Management says it welcomes the ruling and that the court's protection should let it quickly finish talks with Brookfield that have been dragging on for months. The store stays open. The unions say asking for protection doesn't mean they back the current management, and their lawyer says they'll use the process to push for a takeover. And it all goes back to Shein. Last November Shein opened its first permanent physical shop inside the flagship, French shoppers were angry, and brands left the store. The managers bought BHV and dropped Shein in June. But the brands that walked out didn't automatically come back. You can't fix a department store's reputation with a press release. You need the brands to want to be there. City Hall is now involved. Paris deputy mayor Nicolas Bonnet-Oulaldj says he'll meet Brookfield soon and push for a viable plan that supports local brands and jobs. Over the next six months, the question is whether the plan comes from the current management or from a buyer the unions want.
Gianluca Bolelli, writing for FashionNetwork:
In a complex corporate operation, the label’s long-standing industrial partner Gilmar, which applied for a negotiated settlement procedure in October, has sold the stake it held in N°21, marking the start of a new expansion phase for the label, which is aiming to consolidate its market position and bolster its international growth.
Last Wednesday, the only link between Style Capital and N°21 was industry sources telling WWD that the firm was looking at it. On Monday, Style Capital itself announced the deal, so it's now confirmed. It didn't disclose the price. Eric Sylvers at The Business of Fashion adds that the firm didn't explain how the transaction was structured either. The part I care about is that Dell'Acqua stays as creative director. If a buyer kept the logo and dropped the designer, that would be a different and much worse deal. He's staying, and Style Capital says it's protecting the label's creative independence. Some history: Dell'Acqua started N°21 in 2010, after leaving his eponymous label, and showed it in Milan from the Fall/Winter 2010-11 season. Menswear came in 2014, then shoes and accessories. Gilmar bought a minority stake in 2015 to give the label manufacturing and distribution. Today N°21 sells through more than 250 multibrand stores and has its own stores in Tokyo, Milan, Hong Kong and Seoul. BoF notes he was creative director at Rochas until 2019 and briefly led womenswear at Brioni. So it's been a real designer brand that relied on a manufacturer's factories. That's why the Gilmar filing was dangerous for it. And here's where it's going. Roberta Benaglia founded Style Capital in Milan. Its portfolio includes Zimmermann, MSGM, Autry, Soeur, Forte_Forte, Re/Done and Essential Parfums, and FashionNetwork says the companies it holds stakes in have combined revenue of 600 to 700 million euros. Style Capital promises strategic, managerial and industrial support. That last one matters, because industrial support was exactly what Gilmar used to supply. Credit to Benaglia here. She bought N°21 for the designer, not just the logo. If they keep the clothes this sharp and add more stores, people will buy them. For Gilmar, this takes one name out of the restructuring. Today's reports don't say what happens to Iceberg or Paolo Pecora, and the Rimini court hearing on Gilmar's protections is still set for Tuesday, November 24.
Australian Associated Press, citing the Australian Financial Review:
David Jones' private equity owner is in advanced talks with its landlords about possibly closing more than half of its stores amid mounting losses, the Australian Financial Review reports.
We first covered David Jones on Tuesday, October 27, when Nine reported that its directors were weighing insolvency. There are two new points today. First, the Financial Review's report on store closures, which is sourced reporting and hasn't been confirmed. Second, a fact on the record: a spokesman for ASIC, the Australian corporate regulator, told AAP that David Jones hasn't filed its 2025-26 accounts and missed a deadline at the end of October. What's the company saying? That it's still running all 38 stores in Australia and New Zealand, and that it doesn't comment on speculation about possible closures. That isn't a denial. The owner, Anchorage Capital Partners, didn't immediately reply to AAP. On the numbers, David Jones lost 95.5 million dollars in 2024-25, up from 74 million the year before. And look at what it's worth now. Woolworths Holdings paid 2.1 billion for it in 2014 and sold it to Anchorage in 2023 for about 100 million. So about ninety-five percent of the value was gone in nine years. It's also about 6,730 jobs, according to Revelio Labs data as of March. And it matters as a brand: the first store opened in Sydney in 1838, and it's the world's oldest department store still trading under its original name. Here's the reality. On Tuesday, Macquarie University professor Jana Bowden posted photos and video from the Hornsby store, where she'd been the day before, and said she couldn't find a single customer on any floor. Put that next to BHV. In both cases the landlord now has more power than the retailer does. Closing half the stores is really a negotiation over rent. That's what the Financial Review is describing, talks with landlords. Chris Rodwell of the Australian Retail Council blames costs from leases to energy to wages, and wants governments to cut taxes and red tape. The next facts will be whether David Jones files those overdue accounts, and whether any store closure gets confirmed before Christmas trading starts.
We'd like to hear from you. If you work in department stores, wholesale or brand licensing and see something these reports miss, write to us at fashionbusinessdaily at lantern podcasts dot com. We read every message, and a good tip shapes what we follow next.
The thing to watch from today: two department stores, two landlords, and it's the landlords setting the terms. We'll keep track of who signs what. Fashion Business Daily is a Lantern Podcast. I'm Charlotte, that's Joey, and we're back tomorrow, Wednesday, November 4.