The Very Group, a prominent online retail platform, has secured a substantial £150 million refinancing package backed by US private equity firm Carlyle. This financial lifeline comes as the retailer aims to alleviate its significant debt burden and positions itself for future growth, following Carlyle’s takeover last year amid the collapse of the Barclay Brothers’ business empire.
Carlyle’s Strategic Move
Carlyle, which has been a key lender to Very since its previous ownership by the Barclay Brothers, has now taken full control of the retailer. The investment firm, alongside Abu Dhabi-based media company IMI, acquired Very in November 2025 as part of a restructuring deal. This takeover occurred during a tumultuous period for the Barclays, who are currently facing bankruptcy proceedings initiated by their creditors.
In a strategic move to bolster the company’s financial health, Carlyle has converted a portion of Very’s existing debt into equity, effectively injecting £150 million into the business. This restructuring is part of a broader initiative to extend loan maturities and improve the overall capital structure of the retailer.
Extended Financial Facilities
As part of the refinancing agreement, Very has successfully extended its UK securitisation facility to February 2029 and secured a £150 million revolving credit facility that now runs until 2030. These adjustments aim to provide the retailer with a more stable financial foundation as it navigates the challenging retail landscape.
Edward Fry, Chief Financial Officer of The Very Group, expressed optimism regarding the new funding. “Securing this long-term funding reflects the confidence of our lenders in the strength of our business,” he stated. Fry highlighted that the combination of extended loan maturities, improved financial margins, and reduced debt levels would create a robust platform for continued investment in the company’s digital offerings and customer experience.
Future Growth Prospects
With this financial backing, Very is poised to focus on enhancing its digital presence and expanding its product offerings. The retailer, which sells a diverse range of items from clothing to electronics, aims to leverage its reinforced capital structure to navigate market challenges more effectively.
Fry concluded by reaffirming Carlyle’s commitment, noting that the £150 million investment underscores the private equity firm’s ongoing support for Very’s strategic vision. As the company works to regain its footing, the emphasis on disciplined balance-sheet management will be critical in ensuring long-term sustainability and growth.
Why it Matters
The substantial refinancing by Carlyle is a pivotal moment for Very Group, which faces a competitive online retail environment. This support not only alleviates immediate financial pressures but also signals a renewed confidence in the brand’s potential to innovate and thrive. As the retail sector continues to evolve, Very’s ability to adapt and invest in its future will be crucial in maintaining its position within the market. The implications of this deal extend beyond corporate finances; it reflects broader trends in retail restructuring and the vital role of private equity in revitalising struggling businesses.
