💰 Breuninger's $2.7B Valuation
German department store group Breuninger, known for its luxury retail outlets, is up for sale with a total valuation of $2.7B (€2.5B). This includes both retail and property assets. The sales process, called ‘Project Keystone,’ began in June. Breuninger has not officially commented on the sale, leaving experts to estimate the divestiture value.
📊 Interest from Global Players
A list from investment bank Macquarie shows 31 interested buyers. These include private equity investors and retail groups. Some, like Spain's El Corte Inglés and France's Galeries Lafayette, are eyeing the fashion retail side. Others, like U.S. investment bank Morgan Stanley and Apollo, are more focused on the property assets.
🌍 Big Names in the Running
Among the most prominent suitors are Thai retail group Central Group and U.S. businessman Richard Baker, who may seek to buy both Breuninger’s retail and property assets. Baker recently acquired the bankrupt Galeria Karstadt Kaufhof, and he is reportedly looking to expand his footprint in the German market. Even Amazon has shown interest in the Breuninger group.
🔍 Employee Concerns Amid Sale
Breuninger's potential sale has raised concerns among its 6,500 employees, though the Verdi trade union is not too worried yet. "Breuninger is doing much better than other fashion retailers," said Wolfgang Krüger of Verdi. The group generated $1.6B (€1.5B) in revenue last year, with online sales contributing 50%. Bids are expected by the end of October, giving some clarity on the future of the company.
Will Breuninger’s sale impact its high-end image?
