Howard and Aidan Barclay have been granted six weeks to negotiate a deal with their creditors in an effort to avoid bankruptcy proceedings initiated by HSBC over debts linked to the collapse of the family’s logistics business.
At a High Court hearing on Tuesday, Mr Justice Michael Briggs ruled that the brothers must circulate proposals for individual voluntary arrangements (IVAs) by March 17. An IVA is a formal insolvency process that allows individuals in debt to reach an agreement with creditors to repay all or part of what they owe, usually while retaining greater control over their assets than under bankruptcy.
The brothers are the eldest sons of the late Sir David Barclay, who, along with his twin brother Sir Frederick, built a sprawling business empire through leveraged acquisitions. Much of the family’s business structure has unraveled in recent years following mounting debts and a series of insolvencies.
HSBC launched bankruptcy proceedings in December over debts stemming from Logistics Group, the parent company of delivery firms Yodel and ArrowXL. The business entered insolvency in March 2024 after the bank called in its loan. From a secured loan totaling £143.5 million, HSBC recovered only about £1.1 million through the administration process.
Court filings show HSBC, a secured creditor of Logistics Group, received just 0.78 pence in the pound from the administration, according to reports filed by administrators at Teneo. ArrowXL was sold in June for an initial £2.2 million, far below the £57.5 million valuation previously provided by the directors, while Yodel was sold shortly before administrators were formally appointed.
The Barclay family’s broader business interests have also suffered major setbacks. Control of the Telegraph newspaper group and The Very Group retailer has been lost, while property assets held through Trenport Property Holdings are being sold off by insolvency practitioners appointed by International Media Investments, a UAE-backed firm that acquired a significant portion of the family’s debt in 2023 alongside US private equity group RedBird.
IVAs can only proceed if creditors representing at least 75% of the debt agree to the proposals. It remains unclear whether HSBC will support any arrangement put forward by the brothers or continue to pursue bankruptcy. The bank declined to comment.
The next court hearing in the case is scheduled for March 31. Filings last year listed Aidan Barclay’s primary residence as Monaco. The brothers were approached for comment.
