Naked Wines parent looking to sell all UK stores

Majestic Wine is reportedly looking to sell its entire UK retail portfolio to focus on its international e-commerce business, Naked Wines.

Bankers at Rothschild have been contacting private equity firms to buy the British bricks-and-mortar business, which includes around 200 stores, on behalf of the retailer, according to Sky News.

Majestic Wine acquired Naked Wines in 2015, and appointed the e-commerce company’s founder, South African entrepreneur Rowan Gormley, as CEO of the entire company. Naked Wines now operates in Australia, the UK and the US.

Gormley told investors last month that Majestic would present a transformation plan in June, which would include growing the Naked Wines business by releasing capital in Majestic. The brands were to be combined into a single management team under the banner of Naked Wines plc.

“It is clear Naked Wines has the potential for strong sustainable growth… [and] a transformed Majestic business does have the potential to be a long-term winner,” Gormley said at the time.

“But [we] risk not maximising the potential of Naked if we try to do both.”

Gormley said the business would minimise job losses by migrating employees at the closed stores to the revised Naked brand.

A spokesperson for Majestic told Sky News the combination of migrating existing customers to the Naked brand, selling assets and closing stores would lead to the business becoming an “out-and-out growth business”.

According to Majestic, almost 45 per cent of its business now takes place online, and 20 per cent internationally, providing further growth opportunities should further focus be centered on these areas.

The spokesperson said that “while a total sale of Majestic Retail continues to be a potential option, it would be wholly unwise to pursue a single-track process and materially limit the potential value that can be realised to drive growth.”

Naked Wines Australia has been contacted for comment.

Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.

Comments

Comment Manually

I have read and agree to the Terms and Conditions and Privacy Policy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Inside Retail Polls

Do you offer staff the opportunity to earn degrees/certifications while working at your business?
Vote

Twitter

Nominations for 2020 Retailer Awards are officially open! Tag retailers you believe provide exceptional customer ex… https://t.co/wkhQq3UjFE

2 weeks ago

Retail industry bodies including @OZretailers and @retailaustralia are calling on @QldGov to abandon plans to make… https://t.co/8u1zPN0CAg

2 weeks ago

At the @OZretailers national retail awards! Looking forward to see who takes what! #retail #nra #awards https://t.co/T9ZlkgQaFm

2 weeks ago
x

SUBSCRIBE
FREE NEWS BRIEFS Get breaking news delivered