One of Britain’s best-known alcohol retailers is preparing to be put up for sale again as its private-equity owner looks to capitalise on a major turnaround.
Fortress Investment Group is planning to sell Majestic Wine nearly seven years after acquiring the business for £95 million in 2019.
The sale process is still in its early stages, with Rothschild & Co overseeing the preparations, according to reports.
Sources indicate that a formal sale process is unlikely to begin until early next year, and the valuation has yet to be determined.
Founded in 1980, Majestic currently operates over 200 stores across the UK and employs more than 1,000 staff members. Since Fortress took ownership, the retailer has undergone significant expansion and restructuring, transforming itself into a more focused and diversified business.
This includes opening more than 20 new stores, broadening its product range, and strengthening its online presence. Additionally, Majestic has made several acquisitions to enhance its commercial arm, including deals for Vagabond Wines and Enotria, solidifying its position as one of the UK’s largest suppliers of wine and spirits.
Despite this growth, recent trading figures have shown increasing pressures. Sales rose by only 0.9 per cent over the five weeks leading up to December 29—its strongest Christmas performance to date—but this remains modest amid challenging market conditions.
Majestic has indicated that the retail environment is becoming increasingly difficult, citing deteriorating consumer confidence due to the cost-of-living crisis, tax policy uncertainties, and rising mortgage costs. The company has also mentioned higher employment expenses, including increases to the National Minimum Wage, and the complexities of the UK’s new alcohol duty system.
With consumer-focused businesses facing rising costs and fluctuating demand, investor interest in a deal may be tested.
Nonetheless, Majestic’s transformation under Fortress has been impressive. Once part of a larger listed group, it has been reshaped into a specialist retailer with a growing commercial division, an expanded store network, and a more versatile brand portfolio.
The key question now is whether Fortress can achieve a premium valuation, or if market conditions will compel it to lower its expectations as it seeks to exit the investment.
