Carlyle Group has started a formal sale process for UK online retailer Very Group, in a deal that values the business at £2bn ($2.63bn), according to The Telegraph.

The US private equity company took control of Very last November for a nominal £1 after the Barclay family lost ownership.

Carlyle has now appointed Barclays and JP Morgan to run the auction.

PwC administrators, who were brought in last year to manage the handover of the company to Carlyle, said the sale is already in progress and is expected to take several months.

The Very Group has reportedly drawn initial interest from several potential bidders.

Among those seen as possible buyers is N Brown, which had previously been linked with a combination involving Very.

Elliott Advisors, an investment company that owns book retailer Waterstones and Chinese e-commerce group JD.com, is also said to be among interested parties.

Before taking ownership, Carlyle had been Very’s main creditor.

Abu Dhabi-based media group International Media Investments (IMI) also became a major lender to the retailer through a wider financial restructuring.

Carlyle and IMI have both continued to back the business financially while pursuing a sale to recoup their investment.

Earlier this year, Carlyle provided £150m to support the retailer as it dealt with pressure from its debt burden.

It also prolonged a £150m credit facility to February 2030 and obtained an extension on a separate £1.8bn banking facility until February 2029.

Very posted a £500m loss in 2025, mainly due to the write-off of a substantial loan to its previous owners.

The Barclay family had sought to sell the retailer before surrendering control to Carlyle, ending a 20-year connection with the company.

Very Group was created through the combination of Littlewoods and Shop Direct.

Since 2024, the business has been chaired by former Conservative minister Nadhim Zahawi.