NCB Stockbrokers has run the rule over Clerys in advance of a possible approach for the Dublin-based department store group.

The group's biggest asset is its iconic store on O'Connell Street, a landmark for generations of shoppers, but it also owns the Guiney's outlet on Talbot Street and furniture stores in Blanchardstown and Leopardstown.

NCB's corporate finance unit is believed to be acting for clients, but it is by no means certain its scrutiny of the group will result in a bid. The clients' identities are not known. The process is believed to be active but at a tentative stage only.

The retailer's return to profitability last year may encourage those examining the group to develop their interest. Clerys disclosed during the week that it made a pretax profit of €788,025 in the year to January, reversing a €533,319 loss in the previous year.

The group has resolutely maintained its independence in the face of new competition and consolidation in the retail sector but the death in 2004 of its long-time chairwoman led to considerable speculation in the retail sector that its ownership might change.

Clerys said on Thursday - before it emerged that NCB had looked at the group - that there were no plans to change the structure of the trust that controls the business. The group did not make anyone available yesterday to respond to queries.

While a number of groups are known to have taken at least a preliminary look at the retailer in recent years, no takeover proposal has been made public since Clerys rejected two management buy-out offers in 1998 and 1999.

Both approaches were led by Tom Rea, general manager of the business at the time of the initial proposal in December 1998. The first approach valued the business at £19 million (€24.1 million). The second, in June 1999, valued the business at £22-£25 million (€27.9-€31.7 million).

Any formal approach arising from the current scrutiny would have to be worth considerably in excess of the sums mooted by Mr Rea, given the massive uplift in property valuations and the sustained boom in retail spending.

Clerys' premium O'Connell Street site and the thoroughfare redevelopment mean a buyer would have to pay dearly for the group. Adding to its potential valuation, the flagship store was redeveloped in recent years at a cost of some €22 million.