Very Group selects banks for £2.5bn ownership review

In the UK, the Barclay family, which recently relinquished control of The Daily Telegraph, is preparing to hire investment banks for a strategic review of Very Group, their online shopping business. The board, now led by Nadhim Zahawi, is expected to appoint Barclays, JP Morgan, and Morgan Stanley to oversee this process. The review may lead to a full or partial sale of Very Group, which has approximately 4.5 million customers and generates £2.15 billion in annual sales, with a significant portion from its financial services arm. The potential sale comes amid speculation that the business could be valued around £2.5 billion. Insiders suggest that while refinancing is an option, a sale is more likely, particularly given the interest in Very Group's technology-driven financial services. The involvement of Carlyle, a global investment giant, is notable as they have extended the maturity date for part of Very Group's debt, indicating their potential interest in acquiring the business. Nadhim Zahawi's appointment as chairman follows the departure of Aidan Barclay, marking a significant shift in leadership. The strategic review is part of a broader trend, as the Barclay family has faced challenges with their corporate assets, including the recent sale of Yodel Group to avoid insolvency. This situation reflects the ongoing financial pressures faced by the family and their businesses, prompting a reassessment of their holdings. As the review progresses, the outcome could reshape the future of Very Group and its role in the competitive online retail market, highlighting the challenges and opportunities within the sector.