Carlyle initiates £2bn sale of Very Group as bidders emerge

US private equity firm Carlyle Group has commenced a formal sale process for UK online retailer Very Group, valuing the business at £2bn ($2.63bn). The move marks a significant step in Carlyle’s strategy to recoup its investment after acquiring control of the retailer in November 2025 for a nominal £1, following the relinquishment of ownership by the Barclay family.

Barclays and JP Morgan have been appointed to manage the auction, with PwC administrators confirming the process is already underway. The administrators, who were engaged to oversee the handover to Carlyle, indicated the sale is expected to take several months to conclude. This development follows a period of financial turbulence for Very Group, which posted a £500m loss in 2025, primarily driven by the write-off of a substantial loan to its previous owners.

Initial interest has been reported from several potential bidders. N Brown, which had previously been linked with a combination involving Very, is among those exploring a purchase. Elliott Advisors is also reportedly interested; the investment company owns book retailer Waterstones and holds ties to Chinese e-commerce group JD.com.

Carlyle had been Very’s main creditor prior to taking ownership and has continued to provide financial backing. Earlier this year, the private equity firm provided £150m in support and prolonged a £150m credit facility to February 2030. Additionally, a separate £1.8bn banking facility was extended until February 2029. Abu Dhabi-based International Media Investments (IMI) also remains a major lender following a wider financial restructuring.

The sale process aims to stabilise the business, which was formed through the combination of Littlewoods and Shop Direct. Nadhim Zahawi, a former Conservative minister, has chaired the business since 2024. The Barclay family had sought to sell the retailer before surrendering control, ending a 20-year association with the company.