The Barclay family’s once-mighty business empire is crumbling, and this time, it’s their beloved online retailer, The Very Group, that’s slipping through their fingers. A U.S. private equity giant, the Carlyle Group, is on the brink of taking control, marking the end of over two decades of Barclay ownership. But here's where it gets controversial: is this just another chapter in the family’s financial struggles, or a strategic move by Carlyle to capitalize on a profitable retailer? Let’s dive in.
The Carlyle Group, headquartered in Washington, is expected to announce the takeover as early as Monday morning, according to Sky News, which broke the story. This shift will close a 20-year chapter under the Barclays, who have been forced to relinquish a string of high-profile assets—including the Telegraph newspaper, London’s iconic Ritz Hotel, and delivery company Yodel—that once cemented their status as one of Britain’s wealthiest families. And this is the part most people miss: despite Very’s recent financial success, the Barclays’ broader empire has been unraveling due to mounting debt and loan repayments.
The Very Group’s board, chaired by former Conservative chancellor Nadhim Zahawi, met on Sunday to finalize the ownership change. The Barclays, led by identical twins David and Frederick, acquired Very in 2002 for £750 million when it was known as Littlewoods, a catalogue retailer. After merging with Shop Direct in 2004, the business evolved into the online giant it is today. David Barclay’s passing in 2021 marked a turning point, as the family’s fortunes began to decline further, culminating in the loss of the Telegraph newspapers due to loan repayment struggles.
Carlyle’s involvement with Very isn’t new. They first became a lender in 2021 with an undisclosed loan, followed by a £85 million contribution to a £125 million debt package in 2024. Their total financing is believed to exceed £500 million. Meanwhile, Abu Dhabi-based International Media Investments (IMI), another lender to Very, is expected to retain its position. But here’s the twist: despite Carlyle’s significant investment, Very is far from struggling. The retailer reported robust earnings of £307 million in the year ending June 28, with sales topping £2.1 billion. So, why the takeover? Is Carlyle simply securing a profitable asset, or is there more to the story?
This development raises thought-provoking questions: Are private equity firms like Carlyle opportunistically swooping in on businesses with strong fundamentals but vulnerable owners? Or is this a necessary financial restructuring for the Barclays? What do you think? Share your thoughts in the comments—let’s spark a debate!
