Barclay Family Receives £598 Million Lifeline from Arini Capital

A hedge fund spearheaded by Hamza Lemssouguer, a former trader from Credit Suisse, has committed to lending £598 million to the Very Group, owned by the Barclay family. This significant financing is aimed at refinancing existing debt and enhancing the retailer’s financial structure ahead of a potential sale.

The funds provided by Arini Capital will assist in repaying £575 million in debts due to mature next year. Simultaneously, the Very Group will issue senior secured notes to Arini that are set to mature in August 2027, with the possibility of an extension of three years, contingent upon the group achieving specific financial and credit rating benchmarks.

Ben Fletcher, Chief Financial Officer of Very, stated that the refinancing demonstrates the ongoing confidence of the company’s creditors. For the financial year 2025, the Very Group anticipates adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) to be in the range of £300 million to £305 million, an increase from £280 million in 2024.

The retailer’s strategic plan includes enhancing corporate governance by appointing independent board members, coupled with initiatives to reduce distribution costs and operational expenditures. The aim is to attain an adjusted EBITDA between £305 million and £320 million in 2026.

The positive momentum surrounding the Very Group’s refinancing has resulted in a credit rating upgrade from Fitch, which has increased its rating from CCC-plus to B-minus. This adjustment reflects expectations of further debt reduction as the company’s strategic initiatives take root and UK consumer spending begins to recover.

With a diverse retail portfolio featuring low price points and flexible payment schemes, the Very Group predominantly relies on credit for approximately 90% of its sales. The company’s operational model benefits from efficiency derived from its automated fulfilment centre, Skygate.

Meanwhile, International Media Investments (IMI), alongside Carlyle, will continue to support the Very Group financially as part of a broader strategy involving various ventures seeking to strengthen the Barclay family’s assets in both retail and media sectors.