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.
However, they said that a sale was more likely, with potential bidders likely to be attracted by Very’s technology-focused financial services division, alongside its core retail offer.
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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