Very Group edges closer to sale as it appoints banks

Online Retail giant Very Group is inching steadily towards a sale with the latest development being that it has appointed a number of banks to handle an ownership review.

That’s according to Sky News, which said the group (which is chaired by former Chancellor of the Exchequer Nadhim Zahawi) isn’t exactly in full-on sale mode just yet.

In fact, the report on Monday said the banks are handling “a strategic review that could see the [controlling] Barclay family ending its lengthy involvement with the business”.

The news hasn’t been confirmed by the business but the development is reportedly one that will kickstart a full or partial auction of the group.

Insiders also told the news organisation that a refinancing of the business is also a possibility even though a sale is more likely.

They added that interest in buying the company is set to be as much about its technology-driven financial services as its main retail offering.

As to valuation, a figure around £2.5 billion has been suggested.

Sources have also said that one of the group’s lenders, Carlyle, is seen as the front runner to end up controlling the business, “having agreed earlier this year to extend the maturity date for a tranche of the online shopping group’s debt”.

The group currently employees 3,700 people and operates the Very and Littlewoods brands. Its annual sales are £2.15 billion with the financial services arm generating around £420 million of that.