The Very Group is set to appoint bankers as it eyes £2.5bn sale

The Very Group is set to line up  Barclays, JP Morgan and Morgan Stanley to handle a strategic review that could end the Barclay family’s hold over the business. 

The group, now chaired by former chancellor Nadhim Zahawi, is likely to confirm the appointment within days, which will kickstart a full or partial auction of the business that is valued at nearly £2.5bn according to industry sources.

The process could also lead to refinancing of the business, however, sources told Sky News that a sale was more likely given the group’s attractive technology-driven financial services arm as well as its core retail offering.

The group, which sells everything from electrical goods to fashion, has nearly 4.5 million customers.

Some sources expect global investment giant Carlyle, a lender to the Very Group to ultimately emerge in control of the business after it agreed to extend the maturity date of a portion of the online shopping group’s debt.

The Very Group is one of the UK’s biggest online shopping businesses, and owns the Very and Littlewoods brands, employing 3,700 people.

In the 39 weeks to March 30, the retailer recorded a loss before tax of £2.1m as a result of “higher interest costs” than the year before. During the same period last year, it recorded a profit before tax of £11.7m.

Group revenue saw a slight decline of 0.8% to £1.6bn; the group said it had outperformed the wider market as revenue for Very UK grew 1% to £1.4bn.