Very Group’s biggest lender Carlyle is preparing to take control of the online retail group, marking the end of the Barclay family’s long running ownership.
According to Sky News, the US private equity firm could take possession of the business as early as October under the terms of its financing arrangements.
Sources told the broadcaster Carlyle will look to exercise its ‘step-in right’, which allows the firm to convert its debt into equity ownership.
Related Story
It is thought that details of Very’s capital and ownership structure will be confirmed before the control rights are triggered at the start of October.
Sources also told Sky News that IMI, another Very creditor, was also likely to end up with a stake or a preferred position in the recapitalised company’s debt structure.
The news comes after the Barclay family tabled its plans to run a full or partial auction of the online retail group earlier this year, with prospective bidders expected to take interest in the company’s technology arm or core retail offer.
The Very Group secured a major refinancing package worth £598m in April this year, which it used to strengthen its balance sheet and extend debt maturities.
The retailer reported a 3.8% drop in sales to £1.67bn during the 39 weeks to 29 March, dragged down by a 15.1% fall in Littlewoods revenue from “the ongoing managed decline of this business”.
Click here to sign up to Retail Gazette‘s free daily email newsletter
