Shop Direct sale pulled in face of ‘uncertainty’

David and Frederick Barclay, the secretive brothers behind the Telegraph newspapers and the Ritz Hotel, on Thursday pulled plans to sell their Shop Direct retail empire.

The brothers put the company up for sale earlier this year, with three buyout funds fighting out an auction for digital brands including very.co.uk and littlewoods.com.

It is said they valued Shop Direct at £3 billion. It seems likely the funds — Hellman & Friedman, BC Partners and Apax — did not. The owners say political uncertainty was a factor.

A statement said: “At no point did the shareholders commit to a transaction, and retaining the business was always an explicit option, given its significant growth potential.

“The appetite of potential bidders has begun to change due to uncertainty created in the post-election UK environment so the shareholders have decided not to pursue discussions further at this stage.”

Shop Direct has annual sales of almost £2 billion.

While the City thinks it is a good business, there is concern at how much of revenues come from risky consumer credit.