The Barclay family, once among the richest in Britain due to their ownership of a diverse business empire, is set to lose control of The Very Group, a major UK online retailer, after more than two decades. The Washington-based Carlyle Group, a prominent US private equity firm, is poised to take over the retailer, marking yet another significant asset lost by the Barclays. The anticipated announcement, possibly as early as Monday, concludes the family's control of The Very Group, which started with the acquisition of Littlewoods in 2002 for £750 million and its subsequent merger with Shop Direct in 2004.
This transition is the latest in a series of ownership losses for the Barclay family, who have previously sold other high-profile assets such as The Telegraph newspapers, the Ritz hotel in London, and the delivery company Yodel. These sell-offs followed financial difficulties, including struggles to service large loans, which contributed to the family's gradual retreat from their extensive business holdings.
The Very Group, chaired by former Conservative chancellor Nadhim Zahawi, has remained financially resilient despite these ownership changes. Carlyle initially became a lender to the retailer in 2021 and increased its financial involvement by providing about £85 million of a £125 million funding package announced in February 2024, later extending its total financing to more than £500 million. This partnership also involves the Abu Dhabi-based International Media Investments (IMI), which remains a lender and board member alongside Carlyle. Both investors took seats on The Very Group's board as part of a long-term strategic collaboration aimed at supporting the company’s growth ambitions.
Financial reports from the year up to June 2024 highlight The Very Group's solid performance, including a 2.7% increase in UK revenue to over £1 billion for the Very brand alone, and a 10.1% rise in pre-exceptional EBITDA to approximately £130.7 million. Despite reporting a sizeable pre-tax loss of £505.4 million, largely attributable to writing off a £525 million loan owed by the Barclay family’s holding company, the company’s adjusted EBITDA rose 15.9% year-on-year to £307.1 million. Group revenue for the year stood at about £2.1 billion, underscoring the retailer’s robust operational performance.
The Barclay family’s departure from The Very Group signals the end of their ownership era of the business, which has been a significant part of their portfolio. Industry observers note that the sale by the Barclays is part of a broader trend witnessed in recent years, where family-owned conglomerates have faced growing pressures to monetise assets amid changing financial landscapes and debt burdens.
The Very Group and Carlyle have both declined to comment on the transaction, but sources familiar with the matter indicate that the deal is expected to be completed before Christmas. This acquisition by Carlyle, which first loaned to the company in 2021, now places the private equity firm firmly in the driver’s seat of one of the UK’s largest digital retailers, employing around 3,700 people and generating more than £2 billion in annual sales.
As part of the ongoing refinancing arrangements, the Barclay family’s influence over the company will cease, though IMI, alongside Carlyle, is expected to maintain its role as a lender and board member. The transition represents a shift in governance and strategic direction, with Carlyle’s experience in retail investments expected to steer The Very Group through its next phase of growth.
📌 Reference Map:
- [1] (The Guardian) - Paragraphs 1, 2, 3, 6, 7, 8, 9
- [2] (Sky News) - Paragraph 1, 8
- [3] (The Very Group) - Paragraphs 4, 10
- [4] (Drapers Online) - Paragraph 5
- [5] (FashionNetwork USA) - Paragraphs 1, 8
- [6] (The Very Group Financial Statements) - Paragraph 4
- [7] (The Very Group Results Presentation) - Paragraph 4
Source: Noah Wire Services