Fortress prepares to offload Majestic Wine
The owner of Britain’s biggest specialist wine retailer are drawing up plans to offload the retailer nearly seven years after its operations were bought out of its London-listed company.
Fortress Investment Group is in the early stages of preparing to launch a sale of Majestic Wine, which it took control of in 2019, according to reports from Sky News.
Bankers at Rothschild are being arranged to handle a sales process, but sources have cautioned that a formal auction might not get underway until early next year.
The price Fortress expects from the transaction is also unclear.
The chain has a network of more than 200 stores across the UK and Jersey, employing over 1,000 people.
Fortress’ portfolio also includes Punch Pubs, Loungers and Poundstretcher.
Christmas trading period
Two years ago, Majestic snapped up Vagabond Wines for an undisclosed sum and operates the brand Enotria, which is bought last year.
The Enotria sale and its commercial business allowed it to become one of the largest wine and spirits suppliers in the UK, leading it to record its best Christmas trading period.
Total sales in the five weeks to 29 December were up 0.9 per cent it said.
But Majestic Wine also noted the “economic environment became more challenging” in the 12 months to 31 March 2025.
The chain added that these led to a “more fragile consumer confidence” due to cost-of-living concerns, and “uncertainty” over tax policies and higher mortgage rates.
Majestic Wine also called out the increases in the National Minimum Wage and the “new and highly complex” alcohol duty regime.
Naked wines separation
Majestic Wine was separated from online wine retailer Naked Wines when Fortress acquired most of the business for £95m in 2019.
Naked Wines remains listed on the London Stock Exchange as a constituent of the AIM market, but has a market capitalisation of less than £45m.
Shares are down 8.9 per cent this year to date, trading at 66p.
People close to Fortress said Majestic Wine have undergone an significant transformation programme since the acquisition, ranging from new store openings, improving product ranges and expanding its online presence.
The chain has also opened more than 20 additional since in the past seven years, with further openings planned.
Fortress declined to comment.