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The Very Group has cut ties with HSBC, the bank which ran its customer loan portfolio worth around £1.8bn, according to reports from The Times.
The online retailer has instead handed over responsibility of the securitisation of its buy now, pay later offer, to Natwest.
Very provides finance options for the purchase of items such as clothes, toys and household appliances. It is estimated that around 90% of all Very’s sales are made through customer loans.
The group repackages the loans into a securitisation facility that has been running for more than twenty years.
The decision to switch lenders comes after HSBC put the Barclay family’s logistics company into administration last year.
The bank hired restructuring advisors to manage the insolvency of Logistics Group Limited to seek payment on its debt of £143.5m.
In October last year it was reported that The Very Group was working with Barclays, JP Morgan, and Morgan Stanley to manage a strategic review that could lead to a sale of the business.
The Very Group recently reported it saw retail sales rise 2.3% year-on-year during the seven weeks to 27 December 2024.
Excluding Nike, Very UK and Group retail sales grew by 4.5% and 2.8% year-on-year respectively.
Across this period, the home and beauty category jumped 15% YoY, toys, gifts and beauty increased 7.3%, meanwhile fashion and sports rose 2.9% YoY, or 11.2% excluding Nike.
However, the retailer saw its loss-before-tax rise to £22.9m in the 13 weeks ended 28 September 2024, an increase of £5.8m.
Alongside this, its sales fell 5% to £450.2m, with revenue for Very UK falling 3.8% to £392.1m and Littlewoods revenue down 14.4% to £45m.
Very’s retail sales dropped 4.6% to £286.4m, as a result of an 8.6% dip in fashion and sport resulting from the “heavily discounted and contracting market”.
