The financial manoeuvres of the Barclay family have come under scrutiny.
- In 2022, the family withdrew £107.7m from their holding company.
- Lloyds Banking Group sought repayment on £1.2bn of unpaid loans by 2023.
- Three significant payments were made, totalling over £100m.
- Questions remain about the potential sale and future of Very Group.
The Barclay family, owners of the Very Group, made financial headlines by withdrawing £107.7 million from their holding company in 2022. This action took place as they faced mounting pressure from Lloyds Banking Group, which was pursuing repayment of £1.2 billion in unpaid loans expected to be settled by the following year. The significant withdrawal included dividends, distributed cash, and a payout from their property investment arm, Trenport.
In detail, the family extracted this substantial amount through three separate financial activities: £40 million in dividends, £38.8 million in distributed cash, and a £38.9 million payout associated with their property investments. These transactions were disclosed in the annual report of Shop Direct Holdings Limited, the entity handling the family’s retail interests on the high street.
The recent disclosures have cast uncertainty over the future of the business and the wider economic standing of the family’s enterprises. Back in October, the Very Group engaged bankers to explore a potential sale of the business, with hopes that such a move could alleviate the burden of escalating creditor demands.
Despite the sale estimates placing the value of Very Group around £2.5 billion, there are lingering doubts whether this would be sufficient to handle the £2.6 billion owed by Shop Direct Holdings Limited to various financial entities, including private equity firms, large banks, bondholders, and other institutions.
The future of the Very Group remains uncertain amid ongoing financial challenges and strategic business decisions.
