Carlyle to seize control of online retailer Very Group from Barclay family

The American concern elephantine Carlyle is preparing to instrumentality power of Very Group, 1 of Britain's biggest online retailers, successful a woody that volition extremity the Barclay family's agelong tenure astatine different large UK company.

Sky News has learnt that Carlyle, which is the biggest lender to Very Group's contiguous genitor company, could presume ownership of the retailer arsenic soon arsenic October nether the presumption of its financing arrangements.

On Friday, sources said that Carlyle was expected to clasp further talks successful the coming weeks with chap creditors including IMI, the Abu Dhabi-based conveyance which assumed portion of Very Group's debts successful a analyzable woody related to ownership of the Telegraph paper titles.

Carlyle volition astir apt extremity up holding a bulk involvement successful Very Group, which has astir 4.5 cardinal customers, erstwhile it exercises a 'step-in right' which efficaciously converts its indebtedness into equity ownership, the sources said.

Very Group - which is chaired by the erstwhile Conservative chancellor Nadhim Zahawi - borrowed a further £600m from Arini, a Mayfair-based fund, earlier this twelvemonth arsenic it sought to stave disconnected a currency crunch and bargain itself breathing space.

Precise details of the company's superior and ownership operation volition beryllium thrashed retired earlier the alteration of power rights are triggered astatine the opening of October.

The Barclay household drew up plans to prosecute bankers to tally an auction of Very Group earlier this year, but a process was ne'er formally launched.

Carlyle, which declined to comment, whitethorn clasp onto the concern for a further play earlier looking to offload it.

IMI is besides apt to extremity up with an equity involvement oregon a preferred presumption successful the recapitalised company's indebtedness structure, sources added.

Prospective bidders for Very Group were expected to beryllium courted connected the ground of its technology-driven fiscal services limb arsenic good arsenic the halfway retail offering which sells everything from electrical goods to fashion.

Retail manufacture insiders person agelong speculated that the concern was apt to beryllium valued successful the portion of £2.5bn - beneath the valuation which the Barclay household was holding retired for successful an auction which took spot respective years ago.

Very Group - antecedently known arsenic Shop Direct - is 1 of the UK's biggest online buying businesses, owning the Very and Littlewoods brands and employing 3,700 people.

It boasts good implicit £2bn successful yearly sales, with astir one-fifth of that generated by its Very Finance user lending arm.

Mr Zahawi was appointed arsenic the company's president past year, days aft helium announced that helium was lasting down arsenic the MP for Stratford-on-Avon astatine July's wide election.

He replaced Aidan Barclay, a elder subordinate of the household which has owned the concern for decades.

In the 39 weeks to March 29, Very Group reported a 3.8% autumn successful gross to £1.67bn, which it said included "a alteration successful Littlewoods gross of 15.1%, reflecting the ongoing managed diminution of this business".

Nevertheless, it said income successful its location and sports categories were performing strongly.

IMI's presumption is expected to beryllium pivotal to the talks astir the aboriginal of the business, fixed Abu Dhabi's presumption arsenic an important planetary backer of buyout, recognition and infrastructure funds specified arsenic those raised and managed by Carlyle.

The UAE conveyance is expected to look from the protracted saga implicit the Telegraph's ownership with a 15% involvement successful the newspapers.

Under the archetypal woody struck successful 2023, RedBird and IMI paid a full of £1.2bn to refinance the Barclay family's debts to Lloyds Banking Group, with fractional tied to the media assets and the different fractional - solely funded by IMI - secured against different household assets including portion of Very Group's indebtedness pile.

The Barclays, who utilized to ain London's Ritz hotel, person already mislaid power of different firm assets including the Yodel parcel transportation service.

A spokesperson for Very Group declined to comment, portion IMI besides declined to comment.