Very Group loses £500m on loan to Barclay family

Core Insights - The Very Group has reported a significant loss of £500 million due to the write-off of a major loan to the Barclay family, leading lenders to prepare for a potential takeover of the shopping empire [1][2] Financial Performance - The impairment of a £525 million loan to Very's parent company resulted in losses escalating to £505 million for the year ending June, compared to a loss of £16.3 million in the previous year [2] - The Very Group's adjusted earnings increased by 15.9% to £307.1 million, while sales rose by 1.8% to just over £2 billion, despite a challenging retail market [7] Ownership and Control - Lenders are likely to take control of the Very Group, with Carlyle, a US private equity group, collaborating with Abu Dhabi-based IMI to initiate a complex debt-for-equity swap before the year's end [3] - The Very Group has been a core part of the Barclay family business empire, which has faced increasing strains, leading to significant retrenchment in other areas [4] Historical Context - The Very Group was established 20 years ago through the merger of Littlewoods and Shop Direct, both previously acquired by the Barclay brothers [4] - The Barclay family has faced challenges in maintaining control over their business interests, having lost control of the Telegraph Media Group in 2023 and sold other assets, including the delivery business Yodel and the Ritz Hotel [5][6]