A few days ago, the German press reported that the families which own German department store group Breuninger are keen to divest themselves of the group’s retail business and property assets. According to German magazine Wirtschaftswoche, the sales process was initiated in June, and is said to be known within the group as ‘Project Keystone’. Breuninger has not disclosed any information regarding the sale. The total value of a possible divestiture has been estimated by experts to be as much as €2.5 billion.

According to a list drawn up by investment bank Macquarie, 31 entities have expressed an interest in Breuninger, including private equity investors and retail groups. Some of them are said to be interested in the fashion retail business, others only in the property assets. According to German business magazine Manager Magazin, some entities are considering acquiring both.

According to an internal list, institutional investors such as Frankfurt-based investment funds Deka, DWS and Union Investment, as well as international investors such as the Apollo holding company and US investment bank Morgan Stanley, are interested in Breuninger’s property assets.

Potential buyers for the German group’s retail business include Spanish department store group El Corte Inglés and French group Galeries Lafayette.

Thai retail group Central Group and the family office of US businessman Richard Baker are instead said to be interested in buying the Breuninger group as a whole, both retail business and property assets. In spring, Baker acquired bankrupt German department store chain Galeria Karstadt Kaufhof. According to Wirtschaftswoche, even Amazon is interested in the Breuninger group.

According to Manager Magazin, business experts are speculating that the Breuninger group could be sold in its entirety on the basis of a valuation of €2.5 billion. Net of outstanding debts, the acquisition price could reach approximately €2 billion, of which €1.8 billion for the property assets alone. Initial bids should be put forward by the end of October.

Although there is some concern among Breuninger’s 6,500 employees, the Verdi trade union doesn’t yet think there is a major threat for them. “I’m not so worried about job security. Breuninger is doing much better than other fashion retailers,” said Wolfgang Krüger, the regional head of the union’s retail branch, speaking in Stuttgart on Thursday.

Breuninger operates 13 high-end fashion department stores, notably in Stuttgart and Düsseldorf. Last year, the group generated a revenue of approximately €1.5 billion. The Breuninger e-shop, active in 10 countries, accounted for 50% of this figure.