Carlyle is preparing a sale of The Very Group, with an auction valued at around £2 billion expected to start shortly, according to reporting from Sky News.

The move comes months after the US private equity firm took ownership control following the insolvency of VGL Holdco, a corporate entity now separate from the retailer’s operating business.

PricewaterhouseCoopers was appointed administrator to VGL Holdco in November, enabling Carlyle – a long-standing creditor – to assume control for £1. In a Companies House filing this week, PwC said an M&A process would be “run on a basis and timescale consistent with what would be expected for a business the size of the operating group”. The filing also disclosed plans to begin an “immediate” sale process.

Carlyle is understood to be lining up Barclays and JP Morgan to oversee the sale, Sky News reported. People familiar with the situation said Carlyle’s tenure was intended to be transitional, with the timing designed to maximise value. Retail industry insiders cited by Sky News suggested a valuation in the region of £2-£2.5 billion, although the final price will depend on bidder interest.

The Very Group, which includes the Very and Littlewoods brands, has more than £2 billion in annual revenue and 4.4 million customers. It also operates a consumer finance arm and is chaired by Nadhim Zahawi, the former Conservative chancellor.

Carlyle had previously injected hundreds of millions of pounds into The Very Group’s capital structure, initially in 2021 to support the business through the pandemic. Further funding of £85 million in 2024 set the stage for its ownership under existing financing terms. The company also borrowed £600 million from the Mayfair-based fund Arini last year as it sought to ease a cash crunch and secure breathing space.

Recent figures showed Very UK revenue rising 3.7 per cent year-on-year, while Very Finance revenue increased 5.7 per cent to £113 million.

The change of control last autumn ended over two decades of Barclay family involvement with the business. The retail group was known as Littlewoods when the Barclays family acquired it in 2002 for £750 million.

Separate reports highlighted that the family has lost control of other assets, including Yodel and The Daily Telegraph, with lenders such as IMI and HSBC active in recovery efforts. MSN reported the sale of Littlewoods owner The Very Group to US private equity, marking the culmination of a long-running restructuring of the Barclays’ holdings.

---