The parent company of the Daily Telegraph is being threatened with receivership after talks with Lloyds Banking Group Plc over its debts faltered.
Relations between closely-held Press Acquisitions Ltd. — the owner of Telegraph Media Group — and its lender have deteriorated with receivers now being lined up, according to a person familiar with the matter. The talks could still result in an agreement over repayment being reached, the person said.
Press Acquisitions is ultimately controlled by the Barclay family, known for the sprawling business empire built by twins David and Frederick that spanned retail, media and some of the world’s most prominent hotels. The brothers bought the Telegraph group in 2004, which included the Daily Telegraph and the Sunday Telegraph.
“The loans in question are related to the family’s overarching ownership structure of its media assets,” a spokesperson for the family said in a statement. “They do not, in any way, affect the operations or financial stability of Telegraph Media Group.”
Operating profit at the newspaper arm jumped 25% to £33.3 million in 2021, beating pre-pandemic numbers. Sales grew 4% to £245 million with about 7 million registered users and more than 750,000 subscribers.
The businesses “within our portfolio continue to trade strongly, are run by independent management teams, are well capitalised with minimal debt and strong liquidity,” the statement also noted. “They have no liability for any holding company liabilities, continue to operate as normal and are unaffected by issues in the holding company structure above them.”
Lloyds is said to be lining up bankers as it looks to pursue a potential auction of the Telegraph newspapers, Sky News reported Thursday.
A representative for Lloyds declined to comment.
The lender inherited the loans to the family after taking over Bank of Scotland, which it bought as part of a state-brokered rescue of HBOS during the financial crisis.
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The Times of London reported the news earlier.
(Adds reports of auction preparations in seventh paragraph)
Author: Katherine Griffiths, Thomas Seal and Lucca de Paoli
