The Very Group is set to enlist Barclays, JP Morgan, and Morgan Stanley to manage a strategic review that could potentially mark the end of the Barclay family’s long-standing ownership of the ecommerce giant.
According to Sky News, the investment banks, whose appointments are likely to be confirmed within days, will kickstart a full or partial auction of The Very Group.
Retail industry insiders speculated that the business, which owns very.co.uk and littlewoods.com, was likely to be valued in the region of £2.5bn – down from its previous valuation of £4bn.
A refinancing of The Very Group, which counts the global investment giant Carlyle and Abu Dhabi-based IMI among its lenders, is also a possibility, insiders told the news outlet.
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Some sources expect that Carlyle will ultimately take control of the business after agreeing earlier this year to extend the maturity date for a portion of its group debt.
Former chancellor Nadhim Zahawi was appointed The Very Group chairman back in May, replacing Aidan Barclay, a senior member of the family that has owned the business for decades.
In June, the Barclays were told to “lower their expectations” on their hunt for a buyer for the retailer.
The family put the online department store up for sale in April in a bid to tackle its mounting debts.
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