Fortress Investment Group Preparing to Sell Majestic Wine

Fortress Investment Group is initiating plans to sell Majestic Wine, nearly seven years after acquiring the UK’s largest specialist wine retailer in 2019. The move comes as the company navigates a challenging economic landscape and evolving consumer preferences.

Background of the Acquisition

Majestic Wine was separated from online retailer Naked Wines when Fortress Investment Group purchased most of the business for £95 million in December 2019. Majestic Wine Group’s history includes the launch of Majestic Vintners in 1980, and the acquisition of Enotria Winecellars in 1972. City A.M. reports that Rothschild bankers are being arranged to manage the sales process, though a formal auction is not expected to begin until early next year.

Recent Developments and Performance

In April 2024, Majestic acquired Vagabond Wines out of administration, with plans for long-term investment and expansion of the wine bar brand. Fortress intends to invest in Vagabond, aiming to open more wine bars under the brand.

Majestic experienced its best Christmas trading period following the acquisition of Enotria, with total sales up 0.9% in the five weeks to December 29th. However, the company acknowledged a more challenging economic environment in the 12 months to March 31, 2025, citing fragile consumer confidence due to cost-of-living concerns, uncertainty surrounding tax policies, and rising mortgage rates. Harpers reports that Majestic also highlighted increases in the National Minimum Wage and the complexities of the recent alcohol duty regime.

Company Overview

Majestic Wine operates a network of over 200 stores across the UK and Jersey, employing more than 1,000 people. Fortress’s portfolio also includes Punch Pubs, Loungers, and Poundstretcher. Since being purchased by Fortress in late 2019, revenue has risen from approximately £300m.

Naked Wines Performance

Naked Wines, which separated from Majestic in 2019, remains listed on the London Stock Exchange (AIM market) but has a market capitalization of less than £45 million. Shares are down 8.9% year-to-date, trading at 66p.