Very Group Auctioned Again as Carlyle’s Ownership Faces Uncertainty

Just months after US private equity firm Carlyle assumed control, Very Group is reportedly poised for another change in ownership. An auction process is anticipated to commence shortly, with Barclays and JP Morgan appointed to manage the sale, according to a report by Sky News.

The potential sale marks a continuation of a long-running saga for the e-tail business. Very Group was previously under the ownership of the Barclay family for over two decades, and previous attempts to sell the company were unsuccessful, reportedly due to a valuation gap between the asking price and offers received from potential buyers. The Barclay family’s business interests faced difficulties, leading to the relinquishing of control over several assets, including Very Group.

Current estimates place Very Group’s value between £2 billion and £2.5 billion, a figure that falls below the previous owners’ desired valuation. Carlyle’s acquisition was facilitated by their existing role as a major lender to the business, allowing them to take control through the terms of the financing agreement.

Sources indicate that Carlyle’s ownership was always intended to be temporary. While no official comments have been released by any parties involved, the planned sale comes ahead of Very Group’s upcoming release of Black Friday and Christmas trading figures next week. Despite recent challenges, Very Group remains a substantial operation, generating annual revenues exceeding £2 billion.

Recent financial results, filed in October, revealed an adjusted EBITDA of £307.1 million. However, the group reported a pre-tax loss of £505.4 million, attributed to a write-down of an inter-company loan extended to the Barclay family’s holding company. Revenue at Very UK, the group’s primary operation, experienced a marginal decline of 0.2% to £1.83 billion, while overall group revenue decreased by 1.8% to £2.09 billion.