- Vagabond asked the High Court in early March to appoint administrators
- On Friday, Majestic said it had saved nine Vagabond wine bars from closing
Majestic Wine has bought bar chain Vagabond Wines out of administration, rescuing over 170 workers from redundancy.
Vagabond asked the High Court in early March to appoint administrators, blaming legacy Covid-19 debts, cost pressures, and the forced closure of its Heathrow site for deciding to restructure the business.
A fortnight later, Majestic acknowledged it was looking to acquire some or all of the company’s venues, where customers can order their drinks via self-pour machines.
Acquisition: Majestic Wine has bought bar chain Vagabond Wines out of administration
On Friday, Majestic said it had saved nine Vagabond wine bars from shutting down, including establishments in Shoreditch, Monument, and Battersea Power Station, along with 171 jobs.
However, the group noted that the deal excludes Vagabond’s two sites at Gatwick Airport and will result in the closure of an ‘underperforming’ Canary Wharf venue.
John Colley, the Watford-headquartered firm’s chief executive, said the tie-up ‘marks the start of a long-term partnership’, which could involve opening more wine bars ‘when the right opportunities arise.’
He added that it would broaden its customer base, especially among younger wine consumers, and bolster its on-trade supply division, whose customers include Manchester City Football Club.
Matt Fleming, managing director of Vagabond, said: ‘In Majestic, we believe we have found the perfect partner to enhance the unique strengths of the Vagabond business and drive a new phase of profitable growth.
‘Vagabond’s bars help our customers discover unique, quality wines in a highly experiential setting – values that align perfectly with what Majestic’s colleagues do every single day in their stores.’
Vagabond was founded in 2009 as a single shop in Fulham by Stephen Finch, who came up with the idea while studying for an MBA in London.
In addition to running hospitality venues where customers can buy over 100 wines, the company creates its own wine at an urban winery in Battersea, using grapes from vineyards within two hours of London.
It later received a £3.5million capital injection from private equity investor Imbiba to expand its operations outside the UK capital and internationally, but the Covid-19 pandemic stymied momentum.
The firm’s new owner, Majestic, was acquired for £95million in December 2019 by New York-based Fortress Investment Group. Since then, it has launched 19 new stores in towns such as Marlow and Haywards Heath.