Barclay Family Prepares for Potential Sale of Very Group in Strategic Review

The Barclay family, former owners of The Daily Telegraph, is reportedly preparing to explore ownership options for their online shopping empire, Very Group. According to insiders, the company has enlisted the expertise of Barclays, JP Morgan, and Morgan Stanley to oversee a strategic review, which could lead to a sale or partial auction of the business.

Very Group, chaired by former UK chancellor Nadhim Zahawi, serves nearly 4.5 million customers and is valued at an estimated £2.5 billion. The review is expected to assess various options, including a refinancing of the business, though sources suggest a sale is the more likely outcome. Potential buyers may be drawn to both the company’s core retail operations and its technology-driven financial services arm, Very Finance, which contributes over £420 million to the group’s annual sales of £2.15 billion.

Speculation points to Carlyle Group, a key lender to Very Group, as a potential frontrunner in acquiring control of the business. Carlyle had previously extended the maturity date for a tranche of the company’s debt, further positioning itself as a likely contender in any sale process.

The Barclay family has been facing a series of challenges with its business holdings. Last year, they lost control of The Daily Telegraph, and their parcel delivery company, Yodel Group, narrowly avoided insolvency earlier this year. The family's other delivery business, ArrowXL, was forced into administration by its principal lender, HSBC, and is currently up for sale.

As Very Group's future is evaluated, the strategic review could mark the end of the Barclay family's involvement with the online shopping giant, which owns the Very and Littlewoods brands and employs 3,700 people. The decision comes amid wider corporate restructuring and asset sales following financial pressures on the family’s businesses.

While no official comment has been made by Very Group, the outcome of the review is anticipated to attract significant interest from investors and potential buyers in the retail sector.