Shop Direct could be sold off by its owners the Barclay family as part of a wide-ranging review of its stable of British investments.
Aidan and Howard Barclay, the sons of Sir David Barclay, are analysing the family’s business portfolio, which also includes delivery business Yodel, The Telegraph and The Sunday Telegraph newspapers and The Ritz hotel in London.
According to The Times, any of those businesses could be sold off amid efforts to streamline the family’s portfolio and generate capital to buy out some of the family members.
“The family has got a lot bigger over the last three decades. Interests are no longer aligned in the way they once were,” a senior executive close to the Barclays told The Times.
“People want to invest in different things. People want different things. There is now an awful lot of them. Many are very distant from the business.”
Financial advisers are expected to be appointed to value the Barclay family’s businesses and seek buyers.
The Barclay family declined to comment, but it is understood that they aim to complete the review within the next 18 months.
Details of the strategic review emerged just days after Shop Direct revealed that its losses had spiralled amid an “unexpected surge” in PPI claims.
The fashion etailer suffered a statutory pre-tax loss of £185.5m in the 52 weeks to June 30, 2019, despite a 1.8% increase in group revenue to £2bn.
Although the pureplay, which owns the Very and Littlewoods brands, could be sold off completely, it is understood that Aidan and Howard are keen to retain an investment in the business.
The brothers are said to believe that investments in logistics and new financial products are yet to bear fruit for Shop Direct, and are therefore currently keen to maintain a significant shareholding.
The Barclay family created Shop Direct through the merger of Littlewoods and mail order business GUS and has benefited from the rise of online shopping.
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