Tue 19th Mar 2024 - Majestic Wine in talks to buy Vagabond Wines Majestic Wine in talks to buy Vagabond Wines: Majestic Wine is in advanced talks to buy Vagabond Wines, the Imbiba-backed wine bar business that filed notice of its intention to appoint administrators earlier this month. Sky News reported that Majestic, which is owned by Fortress Investment Group, could strike a deal to buy Vagabond within days. The deal would add roughly a dozen wine bars to Majestic's portfolio, as well as an urban winery located at Battersea Power Station. Sources close to the talks said Majestic regarded the two businesses as a complementary fit, with the opportunity to grow the buyer's customer base by marrying Vagabond's product proposition with its on-trade supply division, Majestic Commercial. Propel understands that Majestic first showed an interest in the business last year. A Majestic spokesperson said: “Majestic can confirm that it is exploring a deal to purchase all or part of the Vagabond Wines business. Majestic cannot comment further on ongoing discussions but we are hopeful of securing a deal. Since our acquisition by Fortress Investment Group in 2019, we have invested heavily in our growth plan, opening 16 new shops; hiring many new colleagues; supplying thousands of premium hospitality businesses through our business-to-business division; and training thousands of colleagues as one of the biggest wine educators in Europe.” Propel revealed earlier this month that Vagabond had been placed on the market. Quantuma was advising the 12-strong business, with offers having been due by Thursday, 14 March. The performance of the business is understood to have come under increasing pressure over the past 12 months. The company currently operates nine sites in London and one in Birmingham, plus outlets at Heathrow and Gatwick airports. Opened in May 2022, the Heathrow site was described by the business as a “game changer” but is temporarily closed due to reconfiguring of the security zone, while the site at Gatwick, which opened last year, is believed to have failed to meet expectations. Turnover for the year ended 31 March 2023 stood at circa £16m with consolidated Ebitda of circa £722,000. In January, Propel revealed that Stephen Finch, founder of Vagabond, had left the business. Finch founded Vagabond in 2009, building it into, at one time, a 13-strong, award-winning “DIY” wine bar business. He secured £3.5m of growth capital investment from Imbiba in 2018. Vagabond is currently led by managing director Matthew Fleming and chaired by Rupert Clevely, founder of Geronimo Inns and Hippo Inns. Vagabond features in the Who’s Who of UK Hospitality, which is one of six databases exclusive to Premium Club members. The latest edition was sent to Premium Club members on Friday (15 March) and featured 866 companies. There were 36 updated entries and 11 new companies. The companies, listed in alphabetical order, have their most recent results reported as well as broader information around Ebitda, plans and trading style available. The database merges Companies House information, interviews and other public information to provide an easy to reference and exhaustive guide to the sector. Email kai.kirkman@propelinfo.com today to sign up.