The Very Group partners with top banks to explore a potential sale, marking a shift in ownership dynamics.
- Barclays, JP Morgan, and Morgan Stanley are appointed to manage a strategic review for The Very Group.
- Speculation arises around the possible end of the Barclay family’s control over the ecommerce leader.
- The online retail giant’s valuation is now estimated at £2.5bn, down from a previous £4bn.
- Interest in Very’s tech-driven financial services division suggests refinancing or a sale is likely.
In a significant development, The Very Group has engaged with Barclays, JP Morgan, and Morgan Stanley to conduct a strategic review. This move may signal the departure of the Barclay family from the helm of this ecommerce giant. Industry insiders expect the banks’ appointment to kick off a comprehensive examination that could lead to either a full or partial sale of the company.
The Very Group, renowned for its strong presence in the ecommerce sector through platforms like very.co.uk and littlewoods.com, is currently valued at approximately £2.5 billion. This figure represents a significant decrease from its previous valuation of £4 billion. The retail industry is abuzz with discussions about the potential conclusion of the Barclay family’s long-standing leadership of the business.
A refinancing deal is among the options being considered. However, many experts believe that a sale is more probable. Prospective buyers may be particularly interested in The Very Group’s technology-focused financial services segment, which provides an innovative edge alongside its core retail operations. This interest aligns with the current market trend that emphasizes technology’s role in financial services.
Notably, the global investment firm Carlyle and the Abu Dhabi-based International Market Investments are among The Very Group’s existing lenders. Earlier this year, Carlyle agreed to extend the maturity date for a portion of the group’s debt, leading some to speculate that Carlyle could ultimately assume control of the business.
In terms of leadership, former chancellor Nadhim Zahawi took over as chairman in May, succeeding Aidan Barclay. This change in management is part of the strategic moves to address the mounting debts and reposition the company for a potential sale. The Barclay family was advised in June to temper their expectations regarding the sales value of the retailer, which was officially listed for sale in April.
The potential sale of The Very Group represents a pivotal moment in the company’s history and the wider ecommerce landscape.
