Breuninger interested in acquisition of KaDeWe Group amid insolvency

news March 2024 Fashion United

What: Stuttgart-based fashion retailer Breuninger is reportedly interested in acquiring the insolvent luxury department store operator, KaDeWe Group, for over EUR 100 million.

Why it is important: This move signifies Breuninger's ambitious expansion into the luxury retail sector, highlighting the competitive landscape among potential buyers for the prestigious KaDeWe Group, which includes iconic stores like KaDeWe in Berlin, Alsterhaus in Hamburg, and Oberpollinger in Munich. The deal's progression underscores the challenges and opportunities within the luxury retail market, particularly after KaDeWe Group's insolvency due to high rental costs.

Breuninger's interest in the KaDeWe Group emerges amidst the group's bankruptcy, driven by burdensome rents from its flagship stores. With more than twelve interested parties, the acquisition process is competitive, with a deadline for initial offers set for March 22. The sale is orchestrated by Roland Berger, while Breuninger collaborates with investment bank Macquarie, potentially considering an investor partnership for the takeover. This acquisition interest comes after KaDeWe Group's financial strain linked to investor Signa's difficulties, stirring market speculation about the future ownership of the luxury retailer.

IADS user
Forgot password?

New user? Activate your IADS account