The Barclay family, owners of Very Group, withdrew over £100m in dividends as debt pressures mounted.
- A total of £107.7m was extracted from the company in 2022 amid significant financial obligations.
- Lloyds Banking Group pursued repayment of £1.2bn in loans, increasing scrutiny on the family’s financial activities.
- Questions arise regarding the sustainability of Very Group amidst debts close to £2.6bn.
- Efforts to sell Very Group are underway to address the looming financial challenges.
The Barclay family, recognised as the proprietors of Very Group, orchestrated the withdrawal of more than £100m in dividends from their business operations in 2022. This financial move occurred against the backdrop of escalating debt obligations, raising significant concern among investors and stakeholders alike.
The family strategically extracted a sum of £107.7m from the holding company associated with the online retailer. This included three notable disbursements: a dividend payment amounting to £40m, another distribution of cash valued at £38.8m, and a substantial payout of £38.9m drawn from the property investment entity Trenport. Such financial manoeuvres were disclosed in the annual report of Shop Direct Holdings Limited, illuminating the Barclay family’s financial strategy amidst growing pressures.
Lloyds Banking Group, a key player in providing financial support to the company, has actively pursued the recovery of £1.2bn in outstanding loans. This pursuit highlights increasing scrutiny over the company’s financial dealings, raising pertinent questions about its fiscal health and the ability of its current leadership to manage pressing financial obligations.
The publication of an annual report raised alarms by shedding light on the considerable debts that pose threats to the company’s future viability. The disclosed financials underscored the profound uncertainties surrounding both the Very Group and the broader conglomerate of Barclay family businesses.
In light of these financial challenges, the decision was made to put Very Group up for sale. This course of action aims to generate sufficient funds to satisfy creditors and alleviate the mounting financial distress. Nevertheless, there are concerns that even with an estimated valuation of £2.5bn, the sale may not fully reconcile Shop Direct Holdings Limited’s £2.6bn in accumulated debts.
The financial strategies of the Barclay family continue to undergo scrutiny as efforts intensify to resolve Very Group’s substantial debt issues.
