Fortress Investment Group Initiates Plans to Sell Majestic Wine Retail Chain
Fortress Investment Group, the owner of Britain's largest specialist wine retailer, is reportedly drawing up plans to offload Majestic Wine nearly seven years after acquiring the business. According to reports from Sky News, the investment group is in the early stages of preparing to launch a sale of the retailer, which it took control of in 2019.
Sale Process and Financial Details
Bankers at Rothschild are being arranged to handle the sales process, although sources have cautioned that a formal auction might not get underway until early next year. The expected price Fortress aims to achieve from the transaction remains unclear at this stage. Majestic Wine operates a network of more than 200 stores across the UK and Jersey, employing over 1,000 people. Fortress's portfolio also includes other notable brands such as Punch Pubs, Loungers, and Poundstretcher.
Recent Business Performance and Challenges
Two years ago, Majestic Wine acquired Vagabond Wines for an undisclosed sum and operates the brand Enotria, which was purchased last year. The sale of Enotria and its commercial business allowed Majestic to become one of the largest wine and spirits suppliers in the UK, leading to its best Christmas trading period on record. Total sales in the five weeks to 29 December increased by 0.9 per cent.
However, Majestic Wine also noted that the economic environment became more challenging in the 12 months to 31 March 2025. The chain reported that these conditions led to more fragile consumer confidence due to cost-of-living concerns, uncertainty over tax policies, and higher mortgage rates. Additionally, Majestic highlighted increases in the National Minimum Wage and the new, highly complex alcohol duty regime as significant factors affecting operations.
Separation from Naked Wines and Transformation Efforts
Majestic Wine was separated from online wine retailer Naked Wines when Fortress acquired most of the business for £95 million 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 £45 million. Its shares are down 8.9 per cent this year to date, trading at 66p.
People close to Fortress indicated that Majestic Wine has undergone a significant transformation programme since the acquisition. This includes new store openings, improvements to product ranges, and expansion of its online presence. The chain has opened more than 20 additional stores in the past seven years, with further openings planned. Fortress was contacted for comment but has not yet provided an official statement regarding the sale plans.
