The Very Group is lining up Barclays, JP Morgan and Morgan Stanley to handle a strategic review that could see the Barclay family end its long-standing ownership of the business.
The investment banks, whose appointments are likely to be confirmed within days, are expected to kickstart a full or partial auction of the e-commerce giant, according to Sky News.
A refinancing of The Very Group, which counts the global investment giant Carlyle and Abu Dhabi-based IMI among its lenders, is also a possibility, insiders told the news outlet.
However, they added that a sale was more likely, with bidders expected to be attracted by the company’s technology-driven financial services arm alongside its core retail offering.
Industry insiders speculated that the business, which owns Very and Littlewoods, was likely to be valued in the region of £2.5 billion.
Some sources expect Carlyle to ultimately take control of the business, having agreed earlier this year to extend the maturity date for a tranche of the group’s debt.
The news comes after former chancellor Nadhim Zahawi was appointed as its Chairman earlier this year, shortly after he confirmed he was standing down as the MP for Stratford-on-Avon.
Zahawi replaced Aidan Barclay, a senior member of the family which has owned the business for decades.