The Very Group has announced plans to appoint major banks to manage a strategic review, possibly signaling the end of the Barclay family’s ownership.
- Barclays, JP Morgan, and Morgan Stanley are poised to oversee a comprehensive review, which could lead to a full or partial sale.
- The Very Group is expected to be valued around £2.5 billion, a decrease from its previous £4 billion valuation.
- Insiders suggest the sale is favoured over refinancing, with interest in the company’s tech-focused financial services.
- Carlyle may emerge as a key player, having previously extended debt maturity dates, while leadership changes reflect ongoing strategic adjustments.
The Very Group, a prominent name in ecommerce, is reportedly set to engage Barclays, JP Morgan, and Morgan Stanley to conduct a strategic review. This move is poised to initiate a potential sale process, marking a significant shift in ownership dynamics.
Speculation from Sky News points to the imminent confirmation of these banks, which are expected to conduct a full or partial auction of the group. The Very Group, known for its retail ventures very.co.uk and littlewoods.com, is anticipated to hold a valuation near £2.5 billion, a marked decline from its earlier valuation of £4 billion.
Retail insiders indicate a preference for a sale over refinancing, despite the presence of significant lenders such as Carlyle and Abu Dhabi’s IMI. This preference is largely due to the appealing nature of The Very Group’s technology-focused financial services alongside its core retail offerings.
The Carlyle Group may ultimately take control, given its recent decision to extend some debt maturities, hinting at a potentially pivotal role in The Very Group’s future. Leadership changes, including the appointment of former chancellor Nadhim Zahawi as chairman, underscore ongoing efforts to navigate financial challenges and ownership transitions.
The Barclay family has been advised to adjust their expectations for the sale price amidst efforts to reduce mounting debts. This significant step to list the retailer earlier this year exemplifies their strategy to manage financial pressures.
The Very Group’s strategic review could redefine its future ownership and operational focus, navigating through financial and leadership changes.
