The once-mighty Barclay empire is crumbling, and this time, it’s their beloved online retailer, The Very Group, that’s slipping through their fingers. But here’s where it gets controversial: Is this the end of an era for one of Britain’s richest families, or just another chapter in the high-stakes world of private equity takeovers? Let’s dive in.
The Washington-based Carlyle Group, a heavyweight in the US private equity scene, is on the brink of announcing its takeover of The Very Group, marking the end of over two decades of Barclay family ownership. This move comes as no surprise to those who’ve been following the family’s recent struggles. Over the years, the Barclays have been forced to part ways with iconic assets like The Telegraph newspaper, the luxurious Ritz Hotel in London, and delivery giant Yodel—all of which once cemented their status as billionaires. And this is the part most people miss: While the family’s wealth has taken a hit, The Very Group itself isn’t exactly in financial distress. In fact, the retailer reported a healthy £307 million in earnings last year, with sales soaring to £2.1 billion.
So, why the change in ownership? It’s a tale of debt and strategic maneuvering. Carlyle Group first stepped in as a lender to The Very Group back in 2021, providing an undisclosed loan. Fast forward to 2024, and Carlyle doubled down, contributing £85 million out of a £125 million debt package. With total financing exceeding £500 million, Carlyle’s role shifted from lender to owner. Meanwhile, Abu Dhabi’s International Media Investments (IMI), another key lender, is expected to stay in the picture.
The Barclay twins, David and Frederick, acquired Very (then known as Littlewoods) in 2002 for £750 million. After merging with Shop Direct in 2004, the business evolved into the e-commerce powerhouse it is today. However, David’s passing in 2021 and the family’s struggles to repay substantial loans—including those tied to The Telegraph—have accelerated their decline. The Very Group’s board, chaired by former Conservative chancellor Nadhim Zahawi, confirmed the ownership shift on Sunday, as first reported by Sky News.
Here’s the bold question: Does Carlyle’s takeover signal a new era of growth for The Very Group, or is it a cautionary tale about the risks of leveraging debt in business? And what does this mean for the future of British retail under foreign ownership? Share your thoughts in the comments—this is one debate you won’t want to miss!
