In a significant shift in the UK retail landscape, American private equity firm Carlyle Group is poised to take control of The Very Group, ending more than two decades of ownership by the Barclay family.
The End of an Era for Barclay Ownership
The Washington-headquartered investment giant is expected to announce its acquisition of the online retailer as early as Monday morning, according to industry reports. This development marks the latest in a series of high-profile business disposals by the Barclay family, who have been compelled to relinquish several assets from their former empire.
The Barclay family, led by identical twins David and Frederick, originally purchased the business back in 2002 when it operated as the Littlewoods catalogue retailer. They paid approximately £750 million for the company, which later merged with Shop Direct in 2004. David Barclay passed away in 2021.
Financial Background and Recent Developments
Carlyle's path to ownership began in 2021 when the private equity firm first provided financing to The Very Group, though the initial loan size remained undisclosed. The investor strengthened its position earlier this year with approximately £85 million as part of a larger £125 million debt package. Carlyle's total financial exposure to the business is believed to exceed £500 million.
The Very Group's board, which includes former Conservative chancellor Nadhim Zahawi as chairman, convened on Sunday to formalise the ownership transition, as initially reported by Sky News.
Broader Context and Company Performance
This takeover represents another substantial reduction in the Barclay family's business interests, following their recent losses of control over the Telegraph newspaper group, London's iconic Ritz hotel, and delivery company Yodel. These assets had previously contributed significantly to establishing the family among Britain's wealthiest dynasties.
Despite the ownership changes, The Very Group itself appears to be performing well financially. The retailer recently reported enhanced profitability, with earnings before interest, taxes, depreciation and amortisation reaching £307 million for the year ending 28 June. The company achieved impressive sales of £2.1 billion during the same period.
Abu Dhabi-based investment fund International Media Investments, which also provided financing to Very, is anticipated to maintain its position as a lender following the ownership transition.
Both The Very Group and Carlyle Group have declined to comment on the impending announcement.
