The Barclay family’s recent financial activities raise concerns about their hold on Very Group.
- In 2022, the family withdrew £107.7m from Very Group amid rising debts.
- Lloyds Banking Group seeks repayment of £1.2bn in loans.
- Concerns grow over the future of the family’s business empire.
- A potential sale of Very Group is explored but its efficacy is debated.
In the lead-up to serious financial scrutiny, the Barclay family extracted £107.7 million from their holding company, raising eyebrows in the financial community. This substantial withdrawal occurred in the context of mounting debts and the relentless pursuit of payment by Lloyds Banking Group.
The financial manoeuvre included £40 million in dividends, £38.8 million of other distributed funds, and a £38.9 million payout from their property investment arm, Trenport. Such significant withdrawals were documented in the recent annual report of Shop Direct Holdings Limited, further intensifying discussions about the financial stability of the family’s retail interests.
Lloyds Banking Group, amongst others, is pushing for repayment of a staggering £1.2 billion in loans. As the financial strain mounts, there is considerable speculation about the family’s ability to maintain control over their empire. This situation has brought the company to the point of drafting advisers to consider selling the Very Group to address these liabilities.
However, even with an estimated valuation of Very Group at around £2.5 billion, there are doubts about whether a sale would suffice to cover nearly £2.6 billion in outstanding debts held by Shop Direct Holdings Limited towards various financial entities.
The uncertainty surrounding these financial decisions not only impacts the Barcaly family’s business interests but also casts a shadow on the future of the entire enterprise.
The financial actions of the Barclay family underscore the precarious position of their business endeavours.
