Deloitte’s abrupt resignation as the auditor of Very Group has sent shockwaves through the Barclay family’s business empire, which includes prominent assets such as The Telegraph. Having served as Very Group’s auditor for over a decade, Deloitte’s decision to step down stems from challenges in accessing critical financial information. The intricacies of Very Group’s corporate structure, spanning multiple entities with offshore ownership, posed significant hurdles for Deloitte, particularly concerning the transparency of certain financing arrangements within the wider group.
Despite assertions from Very Group management that all requisite information had been provided to Deloitte and that its financial reports were filed punctually with an unblemished audit opinion, Deloitte expressed lingering concerns that led to its resignation. This unexpected development had an immediate impact on the market, triggering a sharp decline in the value of Very Group bonds due in 2026, plummeting over 3% to 85p in the pound—the lowest level observed since November. Such a downturn in bond prices typically reflects investor apprehension regarding the likelihood of debt repayment.
With Very Group’s total borrowing surpassing £2.5 billion, the company recently secured a financial lifeline of £125 million from Carlyle Group and International Media Investments (IMI). IMI, backed by UAE vice-president Sheikh Mansour bin Zayed Al-Nahyan, has become entangled with Very Group as part of its pursuit of The Telegraph. However, RedBird IMI’s endeavor to acquire The Telegraph, in which the Barclay family holds a stake, faces obstacles due to proposed legislation aiming to prohibit foreign state ownership and influence on British news organizations.
In the face of these challenges, Very Group remains a cornerstone of the Barclays’ business portfolio, experiencing modest sales growth according to its recent half-year results. Originally acquired by Sir David and Sir Frederick Barclay for £750 million in 2002, Very Group has undergone a remarkable transformation from a traditional catalogue retailer to a thriving online enterprise under the stewardship of Aidan Barclay, Sir David’s eldest son and the current chairman of Very Group.