Majestic Wine reported its results for the full-year, swinging to a £8.5 million loss, amid a “tough market”.
The specialist wine retailer revealed that group revenue rose 6.3% to 506.1 million during the 52-week period to April 1.
Nevertheless, Majestic Wine ultimately reported a loss, down from a £8.3 million profit the year before.
This was attributed to increased investment in its Naked Wines business, as well as lower year-on-year retail profitability.
Ultimately, the company said that its Naked Wines acceleration plan remained “on track”, with underlying revenue growth of 1.5%.
Despite a mixed set of figures, Chief Executive, Rowan Gormley, said it was a “pivotal moment” for the firm.
“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.”
Gromley added that if they were unable to complete the process by the summer, Majestic will continue to operate the businesses independently.
Back in March, the firm announced it would be closing stores, and instead shifting its focus on developing Naked Wines, which it purchased back in 2015 for £70 million.
On Wednesday, shares in Majestic Wine jumped amid speculation of a takeover by US hedge fund Elliot Advisors.
Elliot Advisors currently owns Waterstones, and it recently acquired US bookstore chain Barnes & Noble.
Investors proved less than impressed with the figures, with shares falling.
Shares in Majestic Wine (LON:WINE) are currently trading -6.92% as of 11:27PM (GMT).