US private equity giant Carlyle has thrown its weight behind a significant £150 million refinancing programme for the debt-laden online retailer Very Group. This strategic move is designed to substantially reduce the company's financial burdens and comes as Carlyle continues its efforts to find a buyer for the struggling retail business.
Debt Conversion and Loan Extensions
Carlyle, which seized control of Very Group last year following the collapse of the Barclay Brothers' empire, has confirmed it converted a portion of Very's existing debts into equity. This injection of £150 million in capital forms the cornerstone of a broader financial restructuring.
The wider deal also involves the extension of several key loan facilities. Very Group's UK securitisation facility has been prolonged until February 2029, while a separate £150 million revolving credit facility now matures in 2030. The retailer, known for selling clothing, electrical goods, toys, and various other products, stated that these actions "significantly strengthen the group's capital structure."
A Platform for Future Growth
Edward Fry, Chief Financial Officer at The Very Group, emphasised the positive implications of the refinancing. "Securing this long-term funding reflects the confidence of our lenders in the strength of our business," he said.
Fry further explained that the combination of extended debt maturities, improved interest margins, and further deleveraging provides a stable foundation. This platform is intended to support continued investment in the company's digital infrastructure and customer offerings, while maintaining rigorous balance-sheet management.
"The £150 million capital support from Carlyle is a reflection of their strong and ongoing support for the business," Fry added, highlighting the private equity firm's commitment during this transitional period.
Background of the Takeover
Carlyle's involvement with Very Group has evolved significantly. Initially serving as the main corporate lender under the previous ownership of the Barclay family, the private equity firm took full ownership in November last year. This occurred amidst the dramatic collapse of the Barclays' broader business empire, with the family currently confronting bankruptcy petitions from various lenders.
The refinancing initiative marks a critical step as Carlyle navigates the future of Very Group, actively seeking a sale while working to stabilise the retailer's financial position for potential investors or a new chapter of ownership.
