Barclay brothers poised to offload Shop Direct stake

The billionaire Barclay twin brothers – owners of The Daily Telegraph – look set to cash in on Shop Direct’s Christmas bonanza by selling off a big slice of their stake in the £2bn Liverpool business.

Sir Frederick and Sir David Barclay are reported to be about to finalise a partial sale through a private transaction or a stock market listing.

Shop Direct, owner of digital retail brand Very.co.uk and Littlewoods.com, emerged as a big winner during the 2016 Christmas sales period and is benefiting from growing demand for fast fashion and the rapid growth in digital channel retailing.

Sky News sources said the twins – also owners of London’s Ritz Hotel – were “almost certain” to pursue a Shop Direct transaction, but were also considering a range of options.

One of these could be a standalone initial public offering of Very.co.uk, although a full sale looks unlikely, because of the notoriously reclusive nature of the Barclays.

However, they could structure a deal which would allow them to receive hundreds of millions of pounds while retaining control of the business.

Investment banks including Goldman Sachs and UBS are believed to be working with the Barclays on their plans, said Sky.

Shop Direct chief executive Alex Baldock said earlier this month that its digital focus had been vindicated by a 9% rise in sales during the seven weeks to December 23.

He said: “AI-fuelled technology like chatbots and virtual reality has the potential to leave bricks and mortar behind in offering the best personal service.

“We believe it’s the next big shift in retail and financial services, and we plan to be at the vanguard.”

In the year to June 30, Shop Direct reported a 43.6% surge in underlying pre-tax profits to more than £150m.

The company’s other brands include VeryExclusive, which offers high street premium fashion labels such as Vivienne Westwood, Marc by Marc Jacobs and Reiss.

As well as its retail brands, the company has a large finance arm, which enables shoppers to buy goods on credit.

A spokesman for the Barclay brothers has declined to comment.

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