Majestic Wine and Poundstretcher owner Fortress cuts costs
The UK arm of Fortress Investment Group, whose portfolio includes the likes of Majestic Wine, Punch Pubs and Poundstretcher, saw its revenue and profit dip during 2023 as its US owner cut costs.
The London-based division has reported a revenue of £44.4m for the year, down from £50.9m, according to newly-filed accounts with Companies House.
The results also show its pre-tax profit also declined from £4.5m to £2.1m over the same period.
The main activity of Fortress Investment Group is to undertake research into opportunities in Western Europe on behalf of its US parent.
The company receives its revenue from its parent group and its affiliates for its services.
Fortress Investment Group said that during 2023, a transfer pricing analysis was undertaken and that it would be “appropriate” to reduce costs and revenue that is invoiced to its owner and affiliates from 10 per cent to five per cent “in line with industry peers”.
The results come after Fortress Investment Group struck a deal to acquire Poundstretcher in April 2024.
Poundstretcher is one of Britain’s biggest discount retail chains and trades from more than 320 sites.
The discounter, which oversees 4,000 people, is also one of the biggest private retail employers.
Earlier that month, Majestic acquired Vagabond Wines out of administration, adding nine wine bars and saving 171 jobs.
In January 2024, Majestic Wine toasted its best-ever Christmas in its 43-year history this year as more than 60,000 customers shopped with the store for the first time.
The wine retailer recorded an 8.1 per cent uplift in total sales in the eight weeks to December 25 with sales boosted by the opening of six new stores during the year.
Majestic, which now has over 200 stores, said fine wine sales rose by more than 13 per cent as customers shrugged off economic woes to treat their family and friends.
Fortress also owns Punch Pubs Group, an independent pub company with 1,241 pubs across the UK, which it acquired in 2021.