Carlyle to assume control over online retailer Very Group, previously owned by the Barclay family.
Carlyle Set to Take Control of Britain's Largest Online Retailer, Very Group
American investment giant Carlyle is preparing to take control of Very Group, one of Britain's biggest online retailers, from the Barclay family by October 2025. This move marks the end of the Barclay family's long-term control of the company.
Under the original deal struck in 2023, Carlyle and IMI paid a total of £1.2bn to refinance the Barclay family's debts to Lloyds Banking Group. Part of the funds were secured against other family assets, including a portion of Very Group's debt pile.
Carlyle will likely exercise its "step-in right," allowing it to convert its debt into equity and thus gain majority ownership of the retailer. IMI, an Abu Dhabi-based creditor that acquired part of Very Group's debt in a prior refinancing deal, is also expected to retain a stake or hold a preferred position in the recapitalized company's debt structure.
Very Group, previously known as Shop Direct, is one of the UK's biggest online shopping businesses, owning the Very and Littlewoods brands and employing 3,700 people. The company has about 4.5 million customers.
In the 39 weeks to 29 March, Very Group reported a 3.8% fall in revenue to £1.67bn. Sales in Very Group's home and sports categories were performing strongly, but the decrease in Littlewoods revenue was 15.1%, reflecting the ongoing managed decline of this business.
In April 2025, Very Group secured a major refinancing package totaling approximately £598 million, extending its debt maturities and providing the groundwork for this ownership restructuring under Carlyle's potential takeover.
Prospective bidders for Very Group were expected to be courted on the basis of its technology-driven financial services arm and its core retail offering. However, it is unclear whether Carlyle will hold onto the business for a further period before looking to offload it.
Carlyle declined to comment on the matter, while a spokesman for Very Group and IMI also declined to comment. Retail industry insiders have long speculated that the business may be valued in the region of £2.5bn.
[1] The Financial Times, "Carlyle to take control of Very Group," 1 May 2025. [2] The Guardian, "Very Group revenue falls as online retailer restructures," 30 March 2025. [3] Sky News, "Barclay family set to lose control of Very Group," 1 April 2025. [4] The Telegraph, "Very Group secures £598m refinancing deal," 15 April 2025. [5] Reuters, "IMI to retain stake in Very Group after refinancing deal," 20 April 2025.
- Carlyle's acquisition of the majority stake in Very Group indicates a significant shift in the finance realm, as the American investment giant is set to shape the business strategies of one of Britain's largest online retailers.
- As IMI, an Abu Dhabi-based creditor, is expected to retain a stake in Very Group, the partnership between these financial institutions may influence the future investments and direction of the retailer's core operations.
