The Very Group’s Change in Ownership

The disintegration of the Barclay family business empire will continue this week when a US-based investment giant formally takes control of one of Britain’s largest online retailers. The company, which has annual sales of over £2bn, will announce on Monday that the investment giant has become its majority shareholder.

Background

The company was known as Littlewoods in 2002 when it last changed hands in a £750 million deal. The investment giant invested hundreds of millions of pounds into the company’s capital structure, paving the way for it to take ownership control as part of the financing terms.

Current Status

The company employs thousands of people and sells general merchandise under two brands, including electricals, homewares, fashion, and toys. It has 4.4 million customers and operates a large consumer finance business that helps customers manage their payments.

Leadership

A former Conservative chancellor was appointed chairman last year, just days after he announced he would stand down as MP at the July 2024 general election. He replaced a senior member of the family that has owned the business for 23 years.

Financial Performance

In its latest full-year results, the chief executive announced a 16% rise in adjusted earnings before interest, tax, depreciation, and amortization to £307m. The change in control would give the online retailer a stronger capital base and greater financial flexibility to support concerted growth efforts.

Future Plans

Retail industry insiders have long speculated that the company may be worth around £2.5 billion – less than what the family expected it to be worth at auction a few years ago. The investment giant declined to comment and could hold on to the company for quite some time before attempting to sell it. The company also declined to comment.