Fortress prepares to uncork Majestic Wine sale after seven years of expansion

US investment firm Fortress Investment Group is preparing to sell Majestic Wine, the UK's largest specialist wine retailer, almost seven years after acquiring it from its London-listed parent company.

Rothschild has been engaged to oversee the disposal, though no formal auction date has been set and sources indicate a sale process is unlikely to launch before early 2027. No target valuation has been disclosed.

The move marks a significant moment for one of Britain's best-known drinks retailers, which Fortress has spent seven years transforming from a store-led wine merchant into a broader drinks business with a growing wholesale and hospitality arm, a widened store estate and revenues approaching £400 million.

The 2019 acquisition
Fortress acquired Majestic Wine's retail and commercial operations in August 2019 for £95 million, in a deal that saw the business separated from Naked Wines, the online subscription wine retailer that had been its London Stock Exchange-listed parent.

The transaction was structured as £78 million upfront, a £5 million deferred payment contingent on Brexit outcomes, and a £12 million loan note retained by the buyer. An associated freehold property sale contributed a further £5 million, bringing total proceeds to approximately £100 million.

At the time of acquisition, the retail arm reported revenues of around £300 million and operating profit of approximately £4 million. The separation allowed Naked Wines to pursue its direct-to-consumer digital model independently, while Fortress took on the physical store estate with a mandate to invest and grow.

Seven years of growth
Under Fortress ownership, Majestic has opened more than 20 new locations, taking its store estate to over 200 sites across the UK and Jersey. The business employs more than 1,000 people and has developed a commercial business-to-business division supplying restaurants, hotels and events alongside its retail operations.

Revenue has grown from £300 million at acquisition to £386.2 million in the year to March 2025, with operating profit rising from £4 million to £16 million over the same period. However, the most recent full-year results revealed a significant squeeze at the profit level. Operating profit fell 26% in FY2025, and pre-tax profit dropped nearly 46% to £7.8 million, pressured by customs duty reforms described by the company as "highly complex" and the impact of minimum wage increases on its cost base. Despite the margin compression, revenues continued to rise and the group's strategic direction remained outward-looking.

Acquisitions broadening the business
Majestic's acquisitions under Fortress ownership have shifted the company beyond its traditional retail model. In April 2024, the group acquired bar chain Vagabond Wines out of administration for £6.5 million, saving 170 jobs and adding a hospitality dimension to the business across Vagabond's London venue estate.

In March 2025, Majestic agreed to acquire Enotria & Coe, the premium wine and spirits distributor, on undisclosed terms. The deal brings a substantial on-trade distribution business into the group, supplying fine dining restaurants, hotels and specialist retailers. Following the Enotria & Coe acquisition, Majestic projects that combined group revenues will exceed £500 million, a figure that would represent a near-doubling of the business's turnover since Fortress took ownership.

The two deals together have repositioned Majestic from a specialist high street wine retailer into a vertically integrated drinks group with retail, hospitality and wholesale capabilities - a profile that should broaden the range of potential buyers when the formal sale process eventually begins.

Record Christmas trading
The planned sale comes on the back of Majestic's strongest-ever Christmas trading period. In the festive season to January 2026, the company reported sales up 0.9% year-on-year and customer numbers up 10.9%, a performance described internally as transformative. The result was achieved against a backdrop of a retail alcohol market that contracted by 4.1% over the same period, indicating that Majestic gained meaningful market share during the crucial trading window.

The Christmas performance will be central to any sale narrative presented to prospective buyers, demonstrating the brand's resilience and its ability to attract new customers even as wider consumer spending on alcohol declined.

Fortress's UK consumer portfolio
The potential Majestic sale sits within a broader pattern of activity for Fortress in the UK consumer sector. The New York-headquartered firm has assembled a portfolio of British retail and leisure businesses, acquiring discount variety retailer Poundstretcher in 2024 and completing the £354 million acquisition of bar and restaurant chain Loungers in February 2025, taking it private from the London Stock Exchange.

The accumulation of consumer-facing assets suggests Fortress has been building scale in the sector, though the decision to explore a Majestic exit indicates the firm may now be moving into a realisation phase for at least part of that portfolio.

No strategic buyer or private equity acquirer has been publicly linked to the Majestic process. Given the business's scale, its specialist positioning and the Enotria & Coe distribution capability now folded into the group, potential interest could come from drinks industry consolidators, consumer-focused private equity, or trade buyers seeking a branded retail and wholesale platform.

At a group revenue run rate approaching £500 million, with operating profit recovering from the FY2025 pressure, the business is likely to attract a wide field when Rothschild formally launches proceedings.

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