Howard and Aidan Barclay have been given six weeks to reach an agreement with creditors after HSBC launched bankruptcy proceedings over debts linked to the collapse of the family’s logistics empire.
At a High Court hearing on Tuesday, Mr Justice Michael Briggs granted the brothers until 17 March to circulate proposals for individual voluntary arrangements (IVAs), a formal insolvency process allowing debtors to agree repayment terms with creditors and avoid bankruptcy.
The brothers are the eldest sons of the late Sir David Barclay, who, alongside his twin brother Sir Frederick Barclay, built a sprawling business empire through highly leveraged acquisitions. Much of that empire has since unravelled.
HSBC initiated bankruptcy action in December over debts stemming from the collapse of Logistics Group, the parent company of delivery firms Yodel and ArrowXL. The group fell into administration in March 2024 after HSBC called in its loans.
Administrators recovered just £1.1 million of HSBC’s £143.5 million secured lending, representing less than 1p in the pound, according to filings by Teneo at Companies House.
IVAs allow individuals to retain greater control over their assets than bankruptcy, but require the support of creditors representing at least 75 per cent of outstanding debt. It remains unclear whether HSBC will support any proposal from the Barclay brothers or continue to pursue bankruptcy. The bank declined to comment.
The next court hearing is scheduled for 31 March.
The logistics collapse was one of several blows to the Barclay family’s holdings. In recent years, the family has lost control of the Telegraph Media Group and The Very Group.
In 2023, US private equity firm RedBird Capital Partners and Abu Dhabi-backed International Media Investments acquired around £1.2 billion of debt previously held by Lloyds Banking Group that sat behind the family’s businesses.
IMI has since appointed insolvency practitioners at Interpath Advisory to dispose of assets held by Trenport Property Holdings, one of the family’s property vehicles. Filings last year listed Aidan Barclay’s main residence as Monaco.
As part of the Logistics Group administration, ArrowXL was sold in June to Jacky Perrenot Group for an initial £2.2 million, far below a £57.5 million valuation previously put forward by the directors. Yodel was sold in February 2024, shortly before administrators were appointed.
The Barclay family relinquished control of Very in November after US private equity firm Carlyle Group took control, with IMI remaining as a lender.
Meanwhile, the long-running saga over the Telegraph titles continues. A proposed £500 million sale to RedBird collapsed in November after regulatory intervention, prolonging uncertainty since Lloyds seized the papers in 2023. The owner of the Daily Mail is now poised to acquire the Telegraph, a deal expected to face scrutiny from competition regulators.
The Barclay brothers were approached for comment.
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Barclay brothers given six weeks to strike deal to avoid bankruptcy