The Barclay family withdrew over £100m in dividends before banking debts were called.
- They extracted £107.7m from Very Group in 2022 as banks pursued unpaid loans.
- This included £40m in dividends and over £38m each in cash and property payouts.
- Lloyds Banking Group targeted £1.2bn in unpaid loans linked to the family.
- High debts cast doubt on the future of the family’s business empire.
The Barclay family, owners of the online retail giant Very Group, withdrew over £100 million in dividends during 2022, a move that preceded bankers initiating efforts to collect outstanding debts. This financial extraction amounted to a total of £107.7 million, involving substantial disbursements from the holding company linked to the family’s retail interests.
Among the payments made, £40 million was allocated in dividends, alongside a distribution of £38.8 million in cash and a further £38.9 million received from Trenport, the family’s property investment division. These transactions were documented within the annual report of Shop Direct Holdings Limited, the entity representing the Barclay family’s retail investments.
In the context of these financial manoeuvres, Lloyds Banking Group has been active in retrieving payments on loans amounting to £1.2 billion, which remain unpaid. This pursuit is part of a broader financial strategy that highlights the bank’s focus on managing long-standing credit issues.
The report raises concerns about the financial stability and ongoing viability of the broader business empire managed by the Barclay family. This uncertainty stems from substantial debts, including nearly £2.6 billion owed by Shop Direct Holdings Limited to various financial institutions.
Efforts to sell the Very Group, estimated to be worth around £2.5 billion, were initiated in October as a strategy to settle the growing debts. However, questions linger regarding whether such a sale would adequately cover the extensive liabilities accumulated by the family’s business operations.
The substantial financial obligations associated with the Barclay family’s business interests remain a critical concern amidst ongoing debt recovery initiatives.
