Majestic Wine PLC (LON:WINE) shares rose on Tuesday after media reports said the wine merchant is exploring a sale of its UK retail and commercial operations.
Sky News reported that the AIM-listed firm has appointed investment bank Rothschild to seek out potential buyers for the business after reaching out to private equity firms.
READ: Majestic Wines plunges as it hints at divi cut ahead of radical shake-up
Last month, Majestic Wines revealed that it would sell some assets, close stores and review its dividend to focus on its online business, Naked Wines.
However, the company did not say then that it would sell its entire UK retail business, which comprises about 200 stores.
The group, which plans to rename itself Naked Wines PLC, bought the online retail business for £70mln in 2015 and has since more than doubled its size.
Overall, however, the firm has been struggling in recent years due to tough competition from discount supermarkets and online rivals offering cheaper wines.
Online sales account for about 45% of Majestic Wine’s business, with around 20% coming from international sales.
In afternoon trading, shares in Majestic Wine were 1% higher at 240p.