The Very Group is undergoing strategic changes as it considers a potential sale.
- The company plans to appoint Barclays, JP Morgan, and Morgan Stanley for a strategic review.
- Speculation suggests a sale could end the Barclay family’s ownership of the ecommerce firm.
- The business is expected to be valued at around £2.5bn, a drop from a previous £4bn valuation.
- Carlyle and Abu Dhabi-based IMI are among the lenders involved in potential refinancing.
The Very Group, a noted ecommerce entity, is poised for significant strategic shifts as it prepares to appoint Barclays, JP Morgan, and Morgan Stanley to oversee a comprehensive review. This move is anticipated to initiate either a full or a partial auction of the company, which could mark the conclusion of the Barclay family’s longstanding ownership.
Industry insiders suggest the firm, which operates very.co.uk and littlewoods.com, might be valued at approximately £2.5bn. This marks a significant decrease from a prior valuation of £4bn, reflecting broader economic challenges and shifts in the retail landscape.
Amidst these developments, refinancing the company’s considerable debts, managed in part by global investment giant Carlyle and Abu Dhabi-based IMI, is a distinct possibility. However, prevailing sentiment indicates a sale is more likely, particularly given interest in the group’s advanced, technology-driven financial services division.
There is speculation that Carlyle may eventually assume control of The Very Group, following an agreement earlier in the year to extend the maturity date of a portion of the company’s debt. Such financial manoeuvres suggest Carlyle’s increasing influence and potential strategic interest.
Earlier this year, significant changes in the company’s leadership were evident with the appointment of former chancellor Nadhim Zahawi as chairman, replacing Aidan Barclay. This transition underscores the broader strategic and financial recalibrations the group is currently navigating.
The Very Group’s potential sale signifies a pivotal juncture for the company amidst evolving financial and strategic dynamics.
