The Very Group has ended its decade-long partnership with HSBC, appointing NatWest to manage its £1.8 billion customer loan portfolio. This decision comes in response to HSBC’s recent actions against the assets of the Barclay family, which owns the online retailer and financial services provider. NatWest will now oversee the securitisation of Very’s buy-now-pay-later loans, a key element of the company’s business model.
Specialising in consumer financing for products like household goods, clothing and toys, Very conducts around 90% of its sales through customer loans. For over 20 years, the company has repackaged these loans through a securitisation facility, which has been central to its financial structure.
The shift in banking partners follows HSBC’s decision to place Logistics Group Limited, part of the Barclay family’s assets, into administration in 2023 due to £143.5 million in unpaid debt. This led to the sale of Yodel and a planned sale of ArrowXL, aiming to repay creditors. The Barclays’ media holdings, including The Daily Telegraph, The Sunday Telegraph, and The Spectator, were also seized by Lloyds Bank in June 2023 after a £1.2 billion debt default, resulting in a forced sale.
The family’s financial struggles continue to impact various sectors, with RedBird IMI, an investment group tied to the UAE, holding significant debt in Very and other Barclay assets. However, attempts to sell the media properties have faced challenges, with government intervention remaining unlikely.
For Very, this comes at a difficult time. The company recently reported a £22.9 million loss before tax for the 13 weeks ending September 2024, as sales fell by 5% to £450.2 million.