// Shop Direct owner the Barclays almost at point of agreement to refinance the online retailer
// Shop Direct’s losses widened by 645% in the 52 weeks to June 30
Shop Direct owners the Barclay brothers are reportedly on the verge of agreeing to a £150 million financing deal to inject into Shop Direct’s business.
The online retailer’s losses widened by 645 per cent in the 52 weeks to June 30, and its credit rating was being investigated by credit ratings agency Moody’s.
Advisers to the Barclays have claimed that the deal is “all but done”, The Times reported.
The family is said to be close to agreeing terms, which is likely to take the form of an equity injection from the Barclays.
However, it remains unclear how they have financed the deal.
Yesterday a pound’s worth of Shop Direct’s debt was valued at about 84p, with bond investors seeking a return of 14 per cent to lend to the company.
The price of the bonds fell recently after the company which owns the Very and Littlewoods brands, said it had been hit by a surge of payment protection insurance mis-selling claims before the deadline of August 31.
Shop Direct customers have conventionally bought on credit.
Meanwhile, the PPI provision urged the retailer to look for £150 million of additional funding.
Last month the Barclay family was reportedly mulling the sale of Shop Direct as part of a major review of its business portfolio.
The family also owns The Daily Telegraph, The Ritz Hotel and delivery company Yodel.