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Shining a light on PE ownership.

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TH

The Very Group

Online retail (fashion, toys, electrical goods)
PE-OWNED

PE-OWNED

Acquired by Carlyle Group

View PE Firm Profile

What PE Will Likely Do

Predictions

Significant increase in the use of cheaper, lower-quality materials in The Very Group's products like clothing, electronics, and home goods

HIGH LIKELIHOODBased on: Carlyle Group's track record of using aggressive cost-cutting tactics like debt loading, dividend recapitalization, and store/inventory reductions in other retail acquisitions

Reduced product selection and inventory across The Very Group's online stores as the company cuts costs

HIGH LIKELIHOODBased on: The typical industry playbook for private equity firms in the retail sector, which emphasizes short-term financial engineering over long-term investment in product quality and customer experience

Deterioration in the quality of customer service and product support as The Very Group reduces staffing levels

HIGH LIKELIHOODBased on: The lack of any stated plan or commitment from Carlyle Group to maintain or improve The Very Group's product and service offerings

Potential reduction in product warranty periods and coverage as the company looks to cut costs

HIGH LIKELIHOODBased on: The lack of any stated plan or commitment from Carlyle Group to maintain or improve The Very Group's product and service offerings

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Announcements about 'transformation' and 'optimization' initiatives, with promises of improved efficiency

6-12 monthsYOU ARE HERE

“6 to 12 months months”

First round of staff reductions and product line trimmings announced

12-24 months

“12 to 24 months months”

Noticeable decline in product quality and customer reviews, as cheaper materials are used and inventory levels drop

24-48 months

“24 to 48 months months”

Increasing customer complaints about product durability, sizing issues, and lack of support, as cost-cutting measures intensify

48-60 months

“48 to 60 months months”

Potential bankruptcy, restructuring, or fire sale of The Very Group as financial troubles mount

What You Can Do

Take Action

Actions

  • Be wary of any changes in The Very Group's product quality, selection, and customer service in the coming years

  • Consider alternative online retailers that are not owned by private equity firms and have a stronger track record of reinvesting in their products and customers

  • Voice your concerns about declining quality and customer experience to The Very Group, and consider switching to competitors if the changes become unacceptable

Alternatives

Research independent alternativesSAFE

Look for family-owned or employee-owned businesses

Share this company's PE status
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"The Very Group is now PE-owned. Here's what that means for you."