It marks the end of the retailer’s ownership under one of Britain’s wealthiest families.
A private American firm has bought over one of the UK’s biggest online retailers. The move marks the end of a 20-year era for one of Britain’s richest families.
US global investment firm Carlyle is said to have taken control of the Very Group, the parent company to Very and Littlewoods, earlier this week on Monday, November 10.
The Washington-based firm has become the controlling shareholder in the firm of which it was a major lender, with Abu Dhabi-based investment fund International Media Investments (IMI) continuing as a “key stakeholder”.
Both Carlyle and IMI have been invested in the Very Group for the past few years, becoming lenders in 2021.
According to Sky News, the group, which is chaired by former Conservative chancellor Nadhim Zahawi, held a board meeting on Sunday, November 9, to finalise the details of the move.
The Sun reports that the move marks the end of Very’s 20 year ownership under the Barclay Family, which has also been forced to give up control of part of its empire including The Telegraph, The Ritz hotel in London and delivery company Yodel.
It comes after the Very Group reportedly slumped to a £500m loss for the year ending June after writing off a major loan to the Barclay family.
Reports suggest that the takeover will provide the online retailer with a stronger capital base and greater financial flexibility to support a concerted growth effort.
Robbie Feather, group chief executive of The Very Group, said: “This marks an important milestone for The Very Group as we move into an exciting new phase of growth.
“We are delighted to continue to partner with Carlyle and IMI.
“Their continued backing provides us with a stronger foundation to execute on our strategy, increase investment in technology and the customer experience and to build on the momentum across the business.”
The Very Group’s origins can be traced back to the early 2000s after billionaire Sir David Barclay and his twin brother Frederick bought the Littlewoods catalogue business in 2022.
Following a merger with Shop Direct in 2005, the firm began trading as Littlewoods Shop Direct in 2005 before being rebranded as Shop Direct Group in 2008.
The following year, the online firm Very.co.uk was launched to focus on a younger online market, before becoming known as The Very group in 2020 in a further effort to unify its online presence.
Now considered to be the UK’s “second largest pure-pay” retailer, The Very Group is said to boast an annual revenue of over £2 billion.
Meanwhile, the Barclay Brothers were among the UK’s most high-profile businessmen, with a combined wealth estimated to be £7 billion, according to the Sunday’s Times List of 2020.