Fortress Investment Group, the private equity owner of Majestic Wines, has purchased discount chain Poundstretcher for an undisclosed sum.
The news was first reported by Sky News, which stated that Poundstretcher owner Aziz Tayub sold the Leicester-based business to US-based Fortress despite previously indicating that he wanted to float the company on the London Stock Exchange.
Poundstretcher booked £245.5 million in revenues in 2023, a 10% year-on-year decrease, while gross profit fell by 3%, per latest accounts filed with Companies House.
The discounter had 324 stores across the UK as of March 2023, plus an 800,000-square-foot distribution centre in Leicester. It employs around 4,000 people.
According to company accounts, Poundstretcher had a debt-free balance sheet with no overdrafts as of March 2023.
“I am very pleased that the Fortress team will be providing the resources and investment needed to take Poundstretcher to its next stage of growth following my retirement,” said Tayub.
Fortress, a US-based PE firm, bought Majestic Wine for £95 million in 2019.
Majestic recently had its most successful Christmas season in its 43-year history, and earlier this month confirmed the takeover of bar chain Vagabond from administrations, saving hundreds of jobs.