The unravelling of the Barclay family’s business empire will continue this week when Carlyle, the US-based investment giant, formally takes control of The Very Group, one of Britain’s biggest online retailers.
Sky News has learnt that the company, which boasts annual revenues of over £2bn and is chaired by Nadhim Zahawi, the former Conservative chancellor, will announce on Monday that Carlyle has become its controlling shareholder.
IMI, the Abu Dhabi-based media group which has been part of efforts to take control of The Daily Telegraph since 2023, will remain a lender to The Very Group.
Sources said the company’s directors had held a board meeting on Sunday to ratify the changes.
The transaction brings to an end more than 20 years of the Barclay family’s involvement with the business, which was known as Littlewoods when it last changed hands in 2002 in a £750m deal.
Nasdaq-listed Carlyle injected several hundred million pounds into Very Group’s capital structure, paving the way for it to take ownership control under the terms of the financing.
Sources said the change of control would provide the online retailer with a stronger capital base and greater financial flexibility to support a concerted growth effort.
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Previously known as Shop Direct, Very Group employs thousands of people, and sells general merchandise under the Very and Littlewoods brands, encompassing electrical goods, homewares, fashion and toys.
It has 4.4million customers and operates a major consumer finance business to help shoppers manage their payments.
Mr Zahawi was appointed as the company’s chairman last year, days after he announced that he was standing down as the MP for Stratford-on-Avon at the July 2024 general election.
He replaced Aidan Barclay, a senior member of the family which has owned the business for 23 years.
In its latest full-year results, group chief executive Robbie Feather announced a 16% increase in adjusted earnings before interest, tax, depreciation and amortization to £307m.
Carlyle’s move to take control of Very Group was revealed by Sky News in the summer.
Earlier this year, the company borrowed a further £600m from Arini, a Mayfair-based fund, as it sought to stave off a cash crunch and buy itself breathing space.
The Barclay family drew up plans to hire bankers to run an auction of Very Group earlier this year, but a process was never formally launched.
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Retail industry insiders have long speculated that the business was likely to be valued in the region of £2.5bn – below the valuation which the Barclay family was holding out for in an auction which took place several years ago.
The Barclays, who used to own London’s Ritz hotel, have already lost control of other corporate assets including the Yodel parcel delivery service, as well as the Telegraph newspapers.
Carlyle, which declined to comment, could hold onto the business for a significant period before looking to offload it.
Very Group also declined to comment on Sunday.
