Recognizing the consolidation and globalization of the sector in Europe, Proventus identified the retail industry as an attractive area for investment. Due to a locked ownership situation, French retail had not developed at the same pace as the rest of Europe. It became obvious to Proventus that operational efficiency could improve significantly. Examination of Nouvelles Galeries and its publicly traded subsidiary, Bazar de l’Hôtel de Ville, revealed substantial holdings of unrelated, fully depreciated real estate and other non-core assets not reflected in the company’s market valuation. Clearly, there was a need for strategic reorientation.

After acquiring 26% and 18% shareholdings, respectively, in Nouvelles Galeries and Bazar de l’Hôtel de Ville, Proventus entered into a dialogue with management and the other large shareholders. The goal was to restructure the core business and utilize the real estate holdings more efficiently. After constructive discussions to improve operations, Proventus concluded that Nouvelles Galeries could best improve its market position by finding a strategic partner.

In 1991, Proventus initiated activities which led to the sale of Nouvelles Galeries’ shares to Galeries Lafayette, the premier department store chain in Paris. Proventus remained a major shareholder in Bazar de l’Hôtel de Ville. In 1994, Proventus’ proposal to acquire control of Bazar de l’Hôtel de Ville was rejected, and after consultation with Galeries Lafayette, Proventus decided to dispose of its stake in the company.