The Very Group has severed its long-standing relationship with HSBC, appointing NatWest to manage its £1.8 billion customer loan portfolio following HSBC's aggressive actions against other Barclay family assets.

The online retailer and financial services provider, owned by the Barclay family, has transferred responsibility for securitising its buy now, pay later customer loans to NatWest after working with HSBC for approximately ten years. The move marks a significant shift in the company's financial arrangements, which have been crucial to its business model.

Very, which specialises in providing finance options for purchases including clothes, toys and household appliances, conducts approximately 90 per cent of its sales through customer loans. The group has maintained a securitisation facility for over two decades, repackaging these loans as part of its financial operations.

The banking relationship change follows HSBC's decision to place the Barclay family's logistics company into administration last year, when the bank appointed restructuring advisers to handle the insolvency of Logistics Group Limited over unpaid debt of £143.5 million. This led to the sale of Yodel to new investors in April 2023, while administrators have indicated they will sell ArrowXL to help repay the family's creditors.

The developments at Very Group are part of a broader pattern of financial challenges facing Barclay family assets. The family's media holdings, including The Daily Telegraph, The Sunday Telegraph and The Spectator, were seized by Lloyds Bank over unpaid debt of £1.2 billion, leading to their forced sale in June 2023 after years of calls for repayment.

RedBird IMI, an investment group backed by the United Arab Emirates, subsequently purchased the debt secured against the Telegraph titles. The group had initially planned to convert its debt into equity but was prevented from doing so by new government legislation, introduced due to concerns about foreign ownership of UK media outlets. The investment group also holds debt secured against Very as part of its £1.2 billion total investment in Barclay family assets.

The situation has become increasingly complicated, particularly regarding the Telegraph titles, where RedBird IMI's attempts to sell have stalled due to difficulties finding buyers willing to meet their price expectations. A report in The Times described the Telegraph situation as "a shambles," with growing pressure on the government to intervene. However, officials have maintained that the sale remains RedBird IMI's responsibility, refusing to become involved in the process.

The changes come at a challenging time for Very Group, which recently reported increased losses, with loss-before-tax rising to £22.9 million in the 13 weeks to 28 September 2024. During this period, the company's sales fell 5 per cent to £450.2 million, while Very UK revenue declined 3.8 per cent to £392.1 million.

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