The Barclay brothers, owners of Shop Direct, are said to be on the verge of securing £150m of financing to alleviate the etail group’s troubles.
A deal is “all but done” for the investment, which would help the retailer overcome an additional £150m provision for PPI claims, The Times reports. The new funds would come as an equity injection from the Barclay family.
Shop Direct, which runs Very and Littlewoods, last month reported a loss before tax of £185.5m for the 52 weeks to 30 June, compared with a £24.9m loss in 2017/18.
The group said it had been forced to up its PPI provision by £150m to £241m following an “unexpected surge in claims” in August, during which it received more than 276,000. Its “typical” monthly run rate had been 40,000 claims.
Yesterday, Shop Direct announced the appointment of Ben Fletcher, Clarks’ European president, as its new group chief financial officer. He will join on 6 January.
Shop Direct declined to comment.