Investors sour on Majestic Wines as it moves into the red

AIM-listed drinks retailer Majestic Wines (LON:WINE) watched its share price drop by 8.65% to 290.50p (as of 15:30 BST) after it reported a pre-tax loss of £8.5 million for the year ended 1st April. Group revenues were up by 6.3%, but major impairements relating to the company’s store portfolio pushed it into negative territory.

CEO Rowan Gormley commented: “We are at a crossroads in the Company’s history. As laid out in March, we have taken the difficult but important decision to focus on Naked and exit from Majestic. As at the date of this announcement, our intention is to sell the business and we are at an advanced stage with multiple bidders. A further update will be provided if and when negotiations conclude at which point we will seek shareholder approval to move ahead. If we are unable to complete the process over the summer, in time for the important Christmas and New Year season, we will continue to run the two businesses independently of each other and look to restart the process in 2020“.