Majestic could be poised to rescue London bar chain Vagabond from administration and is “exploring a deal to purchase all or part of the business”, the retailer has confirmed.
Earlier this month self-pour wine bar chain Vagabond filed a notice of intention to appoint administrators due to “a legacy of Covid debts”, the company said. This came despite Vagabond making £7.4 million worth of revenue in 2022.
The catalyst to calling in administrators appeared to be the closure of Vagabond’s successful Heathrow venue in January due to a “reconfiguration of airport security”, after which the company took the decision to restructure in order to “safeguard the business and protect the jobs of our brilliant team.”
More than £1.3 million had been poured into the Heathrow site, which opened at Terminal 5 in 2022.
Now Majestic has confirmed it is in advanced talks to purchase Vagabond and its 11 wine bars, with a deal that could take place “within days”.
“Majestic can confirm that it is exploring a deal to purchase all or part of the Vagabond Wines business,” a Majestic spokesperson said.
The specialist retailer believes the combination of the two businesses would create a compelling partnership and accelerate its long-term growth objectives.
db has reached out to Majestic regarding whether, if the deal goes ahead, the plan is for all wines poured at Vagabond bars in future to be supplied by Majestic Commercial, the company’s on-trade arm. At the time of publication the business had declined to comment.
Since Majestic’s acquisition by Fortress Investment Group in 2019 it has invested heavily, opening 16 news shops and supplying more than 3,000 pubs, bars, restaurants and venues.
Majestic COO Rob Cooke told db last autumn that he remains “very confident” in the retailer’s growth plans.
“We have a strong balance sheet and will continue to invest in growth, with more exciting new stores planned this year,” CEO John Colley added earlier this year.
This article originally appeared on the drinks business.
