Fortress Investment Group is preparing to offload Majestic Wine nearly seven years after taking control of the business.
Sky News reported that the private equity firm is in the early stages of planning a sale of the specialist wine retailer, with Rothschild lined up to oversee the process. However, sources told the outlet that a formal auction is unlikely to begin until early next year.
The price Fortress is seeking remains unclear.
Majestic Wine, Britain’s largest specialist wine retailer, currently operates more than 200 stores across the UK and Jersey and employs over 1,000 people. Fortress’ wider retail and leisure portfolio includes Punch Pubs, Loungers and Poundstretcher.
The potential sale comes after a period of significant change for the business. Fortress acquired Majestic Wine in 2019 for £95m, separating it from online retailer Naked Wines, which remains listed on AIM with a market capitalisation of less than £45m.
Its shares are down 8.9 per cent year to date and were trading at 66p.
Since the acquisition, people close to Fortress said Majestic has undergone a substantial transformation programme, including opening new stores, broadening its product range and strengthening its online presence.
The retailer has opened more than 20 additional stores over the past seven years, with more openings said to be in the pipeline.
Majestic has also expanded beyond its core retail business through acquisitions. Two years ago, it snapped up Vagabond Wines for an undisclosed sum, and last year it acquired Enotria, helping to strengthen its position in the commercial market.
That dealmaking, alongside growth in its commercial arm, has helped Majestic become one of the UK’s largest wine and spirits suppliers and supported its strongest Christmas trading performance to date.
Total sales rose 0.9 per cent in the five weeks to 29 December.
Despite that momentum, the retailer has also warned of tougher conditions. In the 12 months to 31 March 2025, Majestic said the economic environment had become more challenging, pointing to more fragile consumer confidence driven by cost-of-living pressures, uncertainty around tax policy and higher mortgage rates.
The business also highlighted rising employment costs, including increases to the National Minimum Wage, as well as the impact of the UK’s new alcohol duty regime, which it described as highly complex.
Any sale process would test investor appetite for specialist bricks-and-mortar retail businesses at a time when consumer-facing operators continue to face cost inflation and uneven demand.
Still, Majestic’s turnaround under Fortress has been notable. What was once part of a wider listed group has been reshaped into a more focused specialist retailer with a growing commercial operation, a larger store estate and a broader brand portfolio.
Now, Fortress appears to be weighing whether the time is right to cash in.
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