Home / Business and Economy / Barclay Brothers Avoid Bankruptcy in Debt Deal
Barclay Brothers Avoid Bankruptcy in Debt Deal
29 Apr
Summary
- Brothers settled over £140m debt with HSBC, avoiding bankruptcy.
- Legal proceedings were withdrawn after agreeing to a debt repayment plan.
- The family previously lost control of The Telegraph newspapers.
Aidan and Howard Barclay have successfully averted bankruptcy by settling over £140 million in overdue debts with HSBC. Europe's largest bank confirmed at a high court hearing that it had withdrawn its legal proceedings against the brothers.
The HSBC action was initiated last year following the collapse of Logistics Group, a business linked to the Barclay-owned courier service Yodel. The bank was owed £143.5 million, with the brothers having provided personal guarantees.
The withdrawal of legal action followed the brothers' agreement to an individual voluntary arrangement (IVA), a debt repayment plan. While the specifics of the IVA were not disclosed, it was noted that the brothers will cover HSBC's legal costs.
This settlement allows the Barclays to avoid the severe consequences of bankruptcy, which could have led to the seizure and sale of their remaining assets. The family has recently undergone significant divestments, including the sale of Very Group and the Ritz hotel in London.
In parallel, the ownership of The Telegraph newspapers, acquired by the Barclays in 2004, has been transferred to German media group Axel Springer. The family had lost control of these titles in 2023 due to separate unpaid debts amounting to £1.16 billion owed to Lloyds Bank.
