Lenders are set to take control of Very Group from the debt-laden Barclay family. Carlyle is expected to acquire the company through a debt-for-equity swap, marking the end of the Barclays’ 20-year ownership. The move comes after various creditors caught up with the family’s business empire.

Carlyle’s takeover of Very Group, which has 4.5 million UK customers, is triggered by expectations that a loan made to another Barclay-controlled entity will not be repaid. City sources believe Carlyle may share ownership with IMI, an Abu Dhabi-based vehicle. There are talks of a potential merger with N Brown.

Carlyle’s decision to call in debts is likely to spark a battle between lenders. Very Group’s parent company, Shop Direct Holdings Limited, has debts totaling £2.8bn. The company owes £600m to a parrot-fancier and turned to a hedge fund for high-cost loans to pay off a bond.

The annual cost of servicing Shop Direct’s debts reached £237m, leading to widened losses of £63.2m. The Barclay family and Carlyle declined to comment on the upcoming changes. City sources speculate on potential partnerships and the impact of the ownership change on Very Group’s future.

Read more at Yahoo Finance: Lenders to seize control of Barclay family’s troubled online shopping site