The separation comes as control of the landmark store opposite Paris City Hall changes hands.
SGM, which has operated the site since 2023, said it sold the business at a loss to a group of executives that includes its outgoing chief executive, Karl-Stephane Cottendin, according to comments the two parties provided to Reuters.
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A spokesperson said Cottendin described the Shein partnership as a “mistake” and confirmed BHV would end the arrangement.
Shein said in a statement that the collaboration with SGM was intended to be temporary from the outset.
The company’s store launch at BHV in November prompted a strong response from the public and campaign groups, with protests focusing on its business model, environmental impact and the sale of childlike sex dolls among products offered online.
On the day the shop opened, the French government attempted to shut down Shein’s platform, although a Paris court later overturned that action, according to the information provided.
Criticism of the partnership also centred on Shein’s low-price model and allegations that illegal products were available on its platform.
SGM had already been facing operational strain before the Shein deal, including falling behind on payments to suppliers. The Shein launch also prompted some brands to leave BHV in protest.
Under the changes now announced, a second BHV store west of Paris will also be placed under new management. SGM will continue to control seven other locations, five of which have hosted Shein this year.
France 24 reported that SGM director Frederic Merlin said contractual commitments with Shein at the non-Paris stores would be “honoured” pending a “long-term” review.
Shein said on 16 June that it respected BHV’s decision, while adding that it was “regrettable” that customers had to navigate ongoing construction works inside the department store.
The split follows regulatory action against Shein earlier this month. French authorities fined the company a total of €22.5m ($26.1m) after an investigation into alleged breaches of consumer protection and environmental information laws.
