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News
Majestic and Punch Pubs owner buys Poundstretcher
The firm that owns wine retailer Majestic and pubco Punch Pubs, Fortress Investment Group, has bought high street discounter Poundstretcher.
The Leicester-based retailer employs approximately 4,000 people and currently holds more than 320 sites across the UK.
One of the UK’s largest privately-owned retailers, the deal will also see the former group commercial director at supermarket retailer Morrisons, Andy Atkinson, take the reins as the CEO.
In addition, Tristan Phillips, who was the former CEO of the firm, assume the role of chief financial officer. The leadership changes as a result of the retirement of Poundstretcher’s owner Aziz Tayub, who has spent almost two decades at the helm.
Last year, it was reported that Tayub was keen for an Initial Public Offering (IPO) for the firm, which would have created an estimated value for the retailer of around £300m. At that time, the floatation was going to be aimed at opening 50 new stores each year, as well as growing warehouse capacity.
Very pleased
But now Tayub said he was “very pleased” about the Fortress acquisition, and said the business would be “providing the resources and investment needed to take Poundstretcher to its next stage of growth following my retirement.”
The move means Fortress now has a significant portfolio across the UK on and off-trade, with Majestic wine, which has more than 200 stores, and Punch’s 1,200 pubs sited across the country.
Speaking about the purchase the managing director of private equity at Fortress Investment Group, Ahsan Aijaz highlighted the growth and profitability plans for Poundstretcher, as well as job creation.
Majestic
Majestic Wine’s commercial and retail business was sold to Fortress Investment Group for £95 million in 2019, and the news follows Majestic’s purchase of Vagabond Wines last month.
Speaking about the 2019 purchase, Fortress said Majestic was “a British institution, occupying a unique position as the nation’s largest wine retailer” and it was excited to “grow the Majestic story”.
“It offers a seamless customer experience across multiple channels – physical retail, online, subscription and to the on-trade – and has a customer base which loves its stores, people, brand and – of course – wines.”