End of an Era as US Private Equity Giant Acquires The Very Group
In a significant shift for the UK retail landscape, The Very Group is poised to fall under the control of Washington-headquartered private equity firm Carlyle Group, marking the end of the Barclay family's more than two-decade ownership of the online retailer. The change of control is expected to be announced as soon as Monday morning, following a board meeting on Sunday chaired by former Conservative chancellor Nadhim Zahawi.
The Barclay Family's Diminishing Empire
This development represents another major asset slipping from the grasp of the Barclay family, which has been compelled to relinquish a series of prestigious businesses that built their fortune. Their portfolio losses now include the Telegraph newspaper, London's Ritz hotel, and delivery company Yodel. The identical twin brothers, David and Frederick Barclay, originally purchased the business in 2002 for £750 million when it was the catalogue retailer Littlewoods. The business later merged with Shop Direct in 2004. David Barclay passed away in 2021.
The family's financial challenges have become more apparent in recent years, notably losing control of the Telegraph newspapers after struggling to repay substantial loans.
Carlyle's Growing Stake and Very's Financial Health
Carlyle's path to ownership began in 2021 when it first became a lender to The Very Group. Its financial involvement deepened in 2024 when it provided approximately £85 million of a £125 million debt package. It is believed that Carlyle's total financing to the business now exceeds £500 million.
Despite the ownership turmoil, The Very Group itself appears to be on solid financial footing. The retailer recently reported enhanced profitability, with earnings before interest, taxes, depreciation, and amortisation (EBITDA) reaching £307 million for the year ending 28 June. The company also achieved impressive sales of £2.1 billion during the same period.
Abu Dhabi-based investment fund International Media Investments (IMI), another lender to Very, is expected to maintain its position as a lender following the ownership transition. Both The Very Group and Carlyle have declined to comment on the impending takeover.
