- For now, Verdi believes that positions at Breuninger remain secure.
Initial reports suggest Breuninger department store chain might be up for sale, causing minimal worry among union Verdi over the 6,500 German jobs. "I'm less concerned about job security. Breuninger is more stable than other textile retailers," stated Wolfgang Krüger, the retail sector lead in Stuttgart. However, some staff members are uneasy, as the owning families of Breuninger Group are reportedly considering selling off both their retail operations and property, as per "Wirtschaftswoche's" report.
A total of 31 companies, including financial investors and retail firms, have apparently shown interest in Breuninger, with some interested in the retail operations alone, others in the properties, and a third group considering a takeover of both. The department store chain remained tight-lipped on the sale matters, according to "Wirtschaftswoche".
A Breuninger spokesperson declined to comment on the sale matter, as per "Wirtschaftswoche's" report on Wednesday. Hermann Hutter, head of the Baden-Württemberg Retail Association, called Breuninger an industry beacon. He expressed hope that in case of a sale, the department store chain would be acquired by an investor who would also keep the stores. They play a significant role in city centers.
There's speculation in business circles that the entire Breuninger Group might be sold for an enterprise value of 2.5 billion euros. Following debt deduction, the estimated purchase price could be around 2 billion euros, with 1.8 billion euros likely for the properties alone. Initial offers are expected by the end of October.
Breuninger operates 13 department stores, including ones in Stuttgart and Düsseldorf, and generated around 1.5 billion euros in sales last year. The online shop, active in ten countries, contributed around half of this, according to the report.
The fashion industry is currently grappling with tough times, with a series of insolvencies recently. Apart from the department store group Galeria Karstadt Kaufhof, the Düsseldorf fashion retailer Peek & Cloppenburg, fashion manufacturer Gerry Weber, and the German subsidiary of the fashion brand Scotch & Soda have filed for insolvency.
The potential sale of Breuninger department store chain has attracted interest from various entities, including financial investors and retail firms. Hermann Hutter, head of the Baden-Württemberg Retail Association, hopes that any prospective buyer will maintain the chain's presence in city centers, given its significant role.
