Very Group Slumps to £500m Loss as Lenders Prepare to Seize Control

Strategic Insights -

The Very Group, owner of Littlewoods.com, has reported a significant loss after writing off a major loan from the Barclay family, its parent company. The impairment on the £525m loan resulted in a £505m loss for the year ending June, compared to a £16.3m loss the previous year. This move is part of a larger effort by lenders to recover debts, potentially leading to the Barclay family losing control of the business.

Key Takeaways:

  • The Very Group reported a £500m loss after writing off a £525m loan from the Barclay family, its parent company.
  • The impairment on the loan resulted in a £505m loss for the year ending June, a significant increase from the £16.3m loss the previous year.
  • The loss was driven by the impairment of the intercompany loan, which was valued at £525m and made to Very's parent company, fully owned by the Barclay family.
  • The retailer's adjusted earnings increased by 15.9% to £307.1m, while sales rose 1.8% to £2.03bn in a "challenging retail market."
  • Lenders, including US private equity group Carlyle and Abu Dhabi-based IMI, are working on a debt-for-equity swap to recover debts from the business.
  • The Very Group has been a key part of the Barclay family business empire, with the family having lost control of other businesses in recent years, including the Telegraph Media Group.
  • The family's other business interests, such as delivery company Yodel and luxury hotels, have also been sold off.

Statistics:

  • £500m: The total loss reported by the Very Group after writing off the £525m loan.
  • £525m: The value of the intercompany loan that was impaired, leading to the significant loss.
  • £505m: The loss reported by the Very Group for the year ending June, compared to a £16.3m loss the previous year.
  • 15.9%: The increase in the Very Group's adjusted earnings to £307.1m.
  • 1.8%: The rise in sales to £2.03bn.
  • £700m: The amount for which the Ritz Hotel was sold to Qatari businessman Abdulhadi Mana Al-Hajr.
  • 20 years: The length of time the Very Group has existed as a merged entity.

Sources:

  • [The Telegraph](https://www.telegraph.co.uk/business/very-group-slumps-pound-500m-loss-parents-corporation/)