Shop Direct has secured £150m of additional funding from its parent company to plug a gap in equity triggered by an unexpected surge in PPI claims earlier this year.
The etail group has had the £150m shortfall provided in full by its owners the Barclay family. The online retailer said although there is “no immediate need for funding”, £75m will be invested into the business by way of an equity injection before the end of the month.
Shop Direct said the remaining £75m “is fully committed” to the business and will be available “for subsequent drawing in accordance with its liquidity requirements”.
The additional funding follows the launch of a wider business review by the Barclay family of its business portfolio, which also includes The Ritz hotel and The Telegraph newspapers.
Shop Direct reported 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.
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