The Very Group has been taken over by US investment giant Carlyle. Owned by the Barclay family for more than two decades, ownership of the company – which is one of the UK’s largest online retailers, employing 3,700 people – will pass to Carlyle, with international media group IMI continuing as a key stakeholder.
A statement on the British retailer’s corporate website describes the move as a “positive outcome for The Very Group”, adding that it provides it with “a strengthened capital base” and “enhanced financial flexibility to support investment in its long-term growth plans”. The Very Group’s CEO Robbie Feather described it as an “important milestone” for the business.
End of an era
It is, however, the end of an era for the company’s association with the Barclay family, who bought the then-Littlewoods catalogue business in 2002 for £750m and merged it with Shop Direct in 2004, creating what became The Very Group. Under their ownership, the company transformed from a traditional catalogue retailer into one of the UK’s largest online shopping platforms, serving over 4.2 million customers and generating annual revenues of more than £2bn.
However, the Barclays business empire has suffered financial problems in recent years. It lost control of the Telegraph media group in 2023 after failing to repay £1.16bn in loans to Lloyds Banking Group, and sold delivery company Yodel in February 2024 as part of an asset sale to relieve financial pressure.
Although the Very Group posted strong full-year results for the full-year to 28 June, including its highest-ever earnings margin at 14.7%, it nonetheless reported a pre-tax loss of £505.4m after writing off a £524.8m loan owed by the Barclay family’s holding company. The company stressed this was a non-cash adjustment with no impact on liquidity – but with Carlyle having provided over £500m in financing since 2021, it had the ability to exercise a ‘step-in right’ that effectively converted its debt into equity ownership, sources told Sky News. The Very Group’s board, chaired by former Conservative Chancellor Nadhim Zahawi, met on Sunday 9 November to confirm the change of ownership, Sky News reported.
What does the future hold for Very?
The Carlyle takeover marks a pivotal moment for The Very Group. Private equity firms like Carlyle typically aim for an eventual exit – however, in The Very Group, it has acquired an operationally strong business that has invested significantly in upgrades to apps and websites and a multi-year cloud infrastructure transformation. With its deep pockets and digital expertise, The Very Group has indicated that its new owners will continue that investment in technology, mobile-first experiences, and flexible payment options – signalling a future focused on growth and innovation.
In a statement on The Very Group corporate website, Robbie Feather said: “We are delighted to continue to partner with Carlyle and IMI. Their continued backing provides us with a stronger foundation to execute on our strategy, increase investment in technology and the customer experience, and to build on the momentum across the business. I’d like to thank the Barclay family for their stewardship and contribution to the Company over the past two decades.”
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