Carlyle set to take control of Very Group, ending Barclay family’s ownership

American investment giant Carlyle is preparing to assume control of The Very Group in a deal that will mark the end of the Barclay family’s long-standing ownership of the online retailer. 

Carlyle - currently the largest lender to The Very Group - could take ownership of the business as early as October under the terms of its existing financing arrangements, according to Sky News.

Sources suggest Carlyle will look to exercise its ‘step-in right’, which allows the company to convert its debt into equity ownership.

It is understood that Very’s capital and ownership structure will be confirmed before the control rights are triggered in early October.

Abu Dhabi-based investment firm IMI, another creditor to the group, is also reportedly in line to secure either an equity stake or a preferential position within the recapitalised company’s debt structure.

It follows the Barclay family’s earlier decision this year to explore a full or partial sale of The Very Group, with potential buyers showing interest in both its core retail operations and its technology division.

In April, The Very Group secured a significant £598 million refinancing package to strengthen its balance sheet and extend debt maturities.

The retailer reported a 3.8% decline in sales to £1.67 billion for the third quarter ending 29 March, driven largely by a 15.1% drop in Littlewoods revenue. In addition, Very UK revenue decreased 2.5% in Q3.

Very.co.uk launched in 2009 to cater to a new generation of online shoppers. In 2020, parent company Shop Direct rebranded as The Very Group, reflecting the growing prominence of its flagship brand.

Nadhim Zahawi was appointed Chairman of the company last year, shortly after announcing his decision to step down as MP for Stratford-on-Avon. He succeeded Aidan Barclay.