Very Group owner Carlyle plans £2bn auction of online retailer

Carlyle, the owner of online retailer The Very Group, is reportedly preparing to launch an auction of the business, valuing it at about £2bn, according to Sky News. 

It is understood that the US private equity firm is lining up Barclays and JP Morgan to advise on a sale of the group, which sells fashion, toys, and electrical goods through its Very and Littlewoods brands. 

Documents filed at Companies House show that administrators expect an “immediate” sale process following Carlyle’s takeover last autumn. An auction is expected to begin shortly, after earlier disposal plans under the Barclay family were shelved.

Carlyle assumed control of the business in November after PwC was appointed administrator to VGL Holdco, a holding company with no operational connection to the retailer. The process allowed Carlyle, a long-standing creditor, to take ownership for £1.

In a filing this week, PwC said a mergers and acquisitions process would be “run on a basis and timescale consistent with what would be expected for a business the size of the operating group”.

Sky News has learned from one person close to the situation that Carlyle’s ownership had always been intended to be transitional, with an onward sale designed to maximise value for stakeholders.

The Very Group generates annual revenue of more than £2bn, employs thousands of people and has about 4.4 million customers. It also operates a sizable consumer finance arm, which allows shoppers to spread payments.

The company is chaired by former Conservative chancellor Nadhim Zahawi and is expected to report strong trading for the Christmas and Black Friday period next week.

Carlyle first invested in the business in 2021, injecting several hundred million pounds to support it during the Covid pandemic. That support included a further £85m in 2024, paving the way for the change of control under the terms of its financing.

The takeover ended more than 20 years of ownership by the Barclay family, who bought the business, then known as Littlewoods, in a £750m deal in 2002.

The group has also relied on additional funding to shore up its finances. Last year it borrowed £600m from Arini, a Mayfair-based fund, as it sought to ease liquidity pressure. IMI, the Abu Dhabi-based media group, is also a lender to the business.

Recent figures showed revenue at Very UK rose 3.7% year-on-year, while income from the Very Finance arm increased 5.7% to £113m.

The Very Group has been approached for comment.