Majestic announce surprise loss
UK wine retailer Majestic released its results with a loss of £8.5 million as more money is diverted into sister company Naked Wines.
Majestic's profit swung to losses as money is invested in its online wine retailer Naked Wines. This week it was announced the losses rose to £8.5 million, down from a profit of over £8 million the year before.
Wine sales at its stores rose 1.5% to £286 million, on heavy promotions that ate into its profits. Its investment in Naked Wines continues, with £19 million used to expand the business by 14.5%.
Its share price has been fluctuating wildly this week, rising by 8% when Elliott Advisors said it was interested in the £100 million portfolio of wine warehouses up for sale, then crashing the next day when this year’s losses were announced.
A number of private equity firms, including OpCapita and Fortress, have also been linked to the deal.