Howard and Aidan Barclay have six weeks to reach an agreement with creditors after HSBC began insolvency proceedings over debts linked to the collapse of the family’s logistics empire.
At a Supreme Court hearing on Tuesday, Justice Michael Briggs gave the brothers until March 17 to circulate proposals for individual voluntary arrangements (IVAs), a formal bankruptcy procedure that allows debtors to agree repayment terms with creditors and avoid bankruptcy.
The brothers are the eldest sons of the late Sir David Barclay, who, along with his twin brother Sir Frederick Barclay, built a sprawling business empire through highly financed acquisitions. Much of this empire has now collapsed.
HSBC began insolvency proceedings in December over debts arising from the collapse of Logistics Group, the parent company of delivery firms Yodel and ArrowXL. The group fell into insolvency in March 2024 after HSBC called in its loans.
According to Teneo’s filings with Companies House, the administrators have recovered just £1.1m of HSBC’s £143.5m secured loans, which equates to less than 1p per pound.
IVAs allow individuals to retain greater control over their assets than in bankruptcy, but require the support of creditors representing at least 75 percent of the outstanding debts. It remains unclear whether HSBC will support a proposal from the Barclay brothers or continue to pursue bankruptcy. The bank declined to comment.
The next court hearing is scheduled for March 31.
The breakdown in logistics was one of several setbacks for the Barclay family holdings. In recent years the family lost control of 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, which backed the family’s businesses.
IMI has since appointed liquidators at Interpath Advisory to divest the assets of Trenport Property Holdings, one of the family’s real estate vehicles. Last year, records listed Aidan Barclay’s primary residence as Monaco.
As part of the Logistics Group’s administration, ArrowXL was sold to the Jacky Perrenot Group in June for an initial £2.2m, well below the directors’ previously proposed valuation of £57.5m. Yodel was sold in February 2024, shortly before administrators were appointed.
The Barclay family gave up control of Very in November after US private equity firm Carlyle Group took control, with IMI continuing to act as lender.
Meanwhile, the long-running saga of the Telegraph titles continues. A planned £500 million sale to RedBird collapsed in November after regulatory intervention, extending uncertainty since Lloyds seized the papers in 2023. The owner of the Daily Mail is now poised to acquire the Telegraph, a deal that is expected to be scrutinized by competition regulators.
The Barclay brothers have been contacted for comment.
