Shop Direct owners the Barclay brothers will receive over £200m in a refinancing deal, following their decision to abandon a sale of the business.
The Barclays, who also own The Daily Telegraph and the Ritz Hotel, London, are to pay themselves a £200m dividend from the launch of a £700m Shop Direct bond issue, which is expected to launch in the coming days.
While the exact amount is unknown, City sources told Sky News that it was likely to exceed £200m.
The bond issue follows the Barclays’ decision to abandon the sale of Shop Direct as potential buyers were unwilling to meet the price tag, said to be around £3bn.
Earlier this month, the business revealed that chief executive Alex Baldock was set to quit the etailer following the decision to quit the sale process.
Baldock, who joined the online retail group in 2012, will step down from his role next year.
He steered Shop Direct through a transformational period, delivering five consecutive years of rising sales and profits as well as ditching its long-standing catalogue and ploughing investment into its use of customer data to drive a personalised online shopping experience.
Earlier this year, the pureplay posted a 10.2% rise in its full-year pre-tax profits.
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