US private equity giant Carlyle has thrown its weight behind a substantial £150 million refinancing programme for the debt-laden online retailer Very Group. This strategic move aims to significantly reduce the company's financial burdens while extending the maturity dates on several key loans.
Private Equity Firm Seeks Sale Amid Financial Restructuring
The refinancing initiative comes as Carlyle continues to explore potential sale options for The Very Group, which it took control of last year. Previously, Carlyle served as the primary corporate lender under the Barclay Brothers' ownership before seizing control during the collapse of the Barclays' business empire.
Complex Ownership Structure and Lender Involvement
Abu Dhabi-based media operation IMI, which previously attempted to acquire The Telegraph newspaper group from the Barclays, also emerged as a major lender as part of this comprehensive deal. Both Carlyle and IMI assumed ownership of Very in November last year, coinciding with the Barclays family facing bankruptcy petitions from various lenders.
On Monday, Carlyle confirmed it had converted a portion of Very's outstanding debts into equity, injecting £150 million of fresh capital into the company. This was part of a broader agreement that saw the retail business—which sells clothing, electronics, toys, and various other products—successfully extend several of its existing loan facilities.
Extended Loan Maturities Provide Financial Breathing Room
Very Group announced that its UK securitisation facility has been extended to February 2029, while a separate £150 million revolving credit facility now matures in 2030. These extensions provide the company with crucial financial stability and operational flexibility during a challenging period for the retail sector.
The company stated that this refinancing arrangement "significantly strengthens the group's capital structure and leaves the business well-positioned for the next stage of its growth."
Management Expresses Confidence in Business Fundamentals
Edward Fry, chief financial officer at The Very Group, commented: "Securing this long-term funding reflects the confidence of our lenders in the strength of our business. The combination of extended maturities, improved margins, and further deleveraging provides a stable platform for continued investment in our digital and customer proposition while maintaining a disciplined approach to balance-sheet management."
Fry added: "The £150 million capital support from Carlyle is a reflection of their strong and ongoing support for the business."
This refinancing represents a critical step for Very Group as it navigates the competitive online retail landscape while addressing its substantial debt obligations. The extended loan terms and fresh capital injection should provide the company with greater operational stability as Carlyle continues to evaluate potential exit strategies through a sale process.
