The Barclay family withdrew over £100m from the Very Group amidst rising debt concerns.
- In 2022, £107.7m was extracted from the online retailer’s holding company.
- The withdrawal included dividends, distributed cash, and a payout from a property investment arm.
- Lloyds Banking Group pursued repayment of £1.2bn in loans a year later.
- Questions arise about the sustainability of Very Group’s financial future.
In an unfolding financial scenario, the Barclay family withdrew a significant amount of £107.7 million from their online retailer’s holding company in 2022. This financial maneuver occurred while Lloyds Banking Group sought repayment of an overdue £1.2 billion loan the following year, as reported by The Telegraph.
The payout extracted by the family was compartmentalized into three distinct payments. It included £40 million of dividends, £38.8 million described as ‘distributed’ cash, and a further £38.9 million originating from the family’s property investment arm, Trenport. This financial extraction was laid bare in the annual report of Shop Direct Holdings Limited (SDHL), which manifests the Barclay family’s substantial retail ventures on the high street.
Regarding the company’s future, the published documents highlighted concerns pointing towards the sizable debts that were beginning to cloud the outlook of the company and the wider Barclay financial empire. In October, to combat these financial stresses, Very Group engaged bankers in an effort to list the business for sale, with the intention of settling the mounting debts owed to creditors. Despite efforts to value Very Group at approximately £2.5 billion, doubts remain as to whether this valuation would suffice in extinguishing the debts at SDHL.
At the close of 2022, SDHL’s financial obligations were vast, totaling nearly £2.6 billion to a collection of creditors, including the private equity firm Carlyle and multiple large banks, bondholders, and other financial institutions.
The future financial stability of the Very Group remains uncertain amid significant debt challenges.
