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Majestic Wine buys Naked Wines | Majestic Wine buys Naked Wines |
(about 1 month later) | |
Majestic Wine is taking over smaller online rival Naked Wines. | |
The move will also see Naked Wines founder, Rowan Gormley, taking over as chief executive of the overall company. Majestic's previous chief executive, Steve Lewis, left the post in February. | |
Majestic said the £70m deal would combine Naked Wines' online and e-commerce skills and Majestic's national store network. | Majestic said the £70m deal would combine Naked Wines' online and e-commerce skills and Majestic's national store network. |
It also said trading in March was weak. Its shares fell 6% in early business. | |
Rowan Gormley has founded a number of high-profile businesses. As well as Naked Wines, which started business in 2008, he was also behind the launch of Virgin Wines, the Virgin ONE Account and Virgin Money. | |
Majestic also plans to expand further in the US and Australia. | |
The two will continue to operate as independent brands. | The two will continue to operate as independent brands. |
Kate Calvert, analyst at Investec, said the takeover was a good move: "Both businesses have much to gain from each other. We expect Mr Gormley to look to unlock Majestic's online potential." | |
Profit guidance | |
Naked Wines acts as a form of wine club and is a prolific user of social media on which its customers and wine producers are encouraged to communicate. | |
It has more than 300,000 customers, compared with Majestic's 640,000. | |
Majestic said same store-sales had risen by 1.5% since Christmas, but that although January and February's trading was in line with expectations, March's was weaker. | |
Majestic said that this sales performance, coupled with "adverse foreign exchange movements in March", meant Majestic would announce adjusted pre-tax profit of approximately £21m in June. | Majestic said that this sales performance, coupled with "adverse foreign exchange movements in March", meant Majestic would announce adjusted pre-tax profit of approximately £21m in June. |
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