David and Frederick Barclay
Barclay Brothers | |
|---|---|
| Born | October 27, 1934 Hammersmith, London, England |
| Died | January 10, 2021 (aged 86) (David Barclay) |
| Occupation | Businessmen |
| Known for | Ownership of The Daily Telegraph, The Sunday Telegraph, The Spectator; retail and real estate businesses; ownership of Brecqhou island |
Sir David Rowat Barclay (27 October 1934 – 10 January 2021) and Sir Frederick Hugh Barclay (born 27 October 1934), often referred to as the "Barclay Brothers" or "Barclay Twins", were British businessmen who amassed billionaire status. Frederick remains alive following David's passing in 2021. Together, they oversaw a diverse portfolio primarily spanning media, retail, and real estate until David’s death.
Their combined fortune was estimated at £7 billion according to the Sunday Times Rich List of 2020. Despite their vast assets, the brothers maintained a notably private lifestyle, shunning public attention.
The UK operations of their enterprises are managed by David’s son, Aidan. Their corporate arrangements have been scrutinized amid accusations of tax avoidance involving offshore entities and trusts. Their company Press Holdings owns Telegraph Group Limited, which controls The Daily Telegraph and The Sunday Telegraph. Formerly, they also held ownership of Apollo and The Spectator magazines.
In 1993, the duo secured the lease for Brecqhou, a small island located near Sark within the Channel Islands.
Biography
Born just ten minutes apart in Hammersmith, London, the Barclay brothers were sons of Scottish parents Beatrice Cecilia (née Taylor; deceased 1989) and Frederick Hugh Barclay, who worked as a travelling salesman. They had eight other siblings. Their father passed away when they were twelve years old. Leaving school in 1950, they began working in the accounts department at General Electric Company plc before training as painters and decorators.
David wed Zoe Newton in 1955; she was a former ballet dancer who became one of Britain’s leading models, famed for appearances on covers like Picturegoer and advertisements for the Dairy Council. By the late 1950s, the brothers ran Candy Corner, a shop selling tobacco and sweets near Kensington. However, in 1960 Frederick and Douglas faced bankruptcy after their landlord repossessed the shop due to lease violations. At that time, their ventures included a builders and decorators business named Barclay Brothers.
In 1962, David took on the role of director at Hillgate Estate Agents alongside Zoe as co-director; she eventually left modelling to concentrate on family life. Following his bankruptcy discharge by 1968, Frederick assumed control of the family enterprises with David assisting by settling outstanding debts. They transformed London boarding houses into hotel properties.
Between 1968 and 1974, substantial loans from the Crown Agents facilitated their growth in the hospitality sector. In 1970, they purchased Gestplan Hotels, which included the Londonderry House Hotel on Park Lane. Frederick married Hiroko Asada during the mid-1970s.
Starting in the late 1960s, their interests expanded into breweries and casinos. The Howard Hotel by the Thames was acquired in 1975. In 1983, they bought Ellerman Lines—a brewing and shipping conglomerate—for £45 million, later divesting its brewing arm for £240 million. These funds supported their acquisition of London's iconic Ritz Hotel in 1995. They also invested £370 million into Bermuda-based shipping company Gotaas-Larsen and £200 million into Automotive Financial Group in 1994. Their philanthropic contributions amounted to approximately £40 million towards medical research between 1987 and 2000, which contributed to them receiving knighthoods that year.
Their net worth increased consistently: ranked 42nd on The Sunday Times Rich List in 2004 with £750 million; rising to £1.8 billion by 2006 (24th position); and leading the Media Rich List in 2012 with an estimated £2.25 billion.
David passed away on 10 January 2021 following a brief illness.
In May 2021, Frederick was ordered by a court to pay his former wife Hiroko £100 million after their divorce; the judge criticized his unlawful sale of a yacht despite existing court injunctions. Subsequently, in July 2022, a high court determined Hiroko had not demonstrated contempt of court regarding non-payment of the settlement but found Frederick guilty of contempt for failing to cover £245,000 in legal fees and maintenance payments—potentially exposing him to imprisonment.
Ellerman Lines
In 1983, the brothers purchased the brewing and shipping conglomerate Ellerman for £45 million. Subsequently, they divested the brewing segment for £240 million and, by late 1985, transferred ownership of the shipping division to its management team. This transaction played a key role in shaping the Barclays' strategy of acquiring firms, dismantling them, and capitalizing on their real estate assets. Their method of gaining an insider edge was notable: they held confidential negotiations with Ellerman's non-executive chairman, David Scott, granting him an exclusive option to acquire the company while maintaining his role. Nevertheless, shortly after the agreement was finalized, Scott was requested to step down amid allegations of leaking details about the offer.
The Very Group and Littlewoods
In 2002, the brothers acquired Liverpool-based retailer Littlewoods from the Moores family for £750 million. This purchase was funded by HBOS, which secured a 5% stake in their bidding entity, LW Investments. They combined Littlewoods with their previously acquired The Very Group, creating Littlewoods Shop Direct Home Shopping Limited, which commands a dominant position in the UK home shopping sector. The Littlewoods department store outlets were subsequently closed and sold; Associated British Foods acquired 120 properties primarily leased to Primark, while others were rented to retailers including Marks & Spencer, New Look, and British Home Stores.
Following this acquisition, HM Revenue and Customs reimbursed Littlewoods over £200 million in VAT along with £268 million in interest after identifying breaches of EU regulations. Littlewoods later initiated legal action against HMRC seeking £1 billion in compounded interest.
In 2024, Deloitte resigned as auditors for Very Group due to challenges in obtaining necessary information concerning financing arrangements within the group's intricate ownership framework spanning multiple companies—some unaudited—and ultimately controlled by an offshore entity.
Yodel
Delivery firm Yodel has faced criticism for substandard service but has shown improvements in recent years. Operating under Home Delivery Network Ltd., Yodel reported losses amounting to £130 million in 2011.
handbag.com
In October 2006, Barclays sold handbag.com for £22 million, nearly entirely profit. The site originated as a joint venture between Hollinger International and Boots Group in 1999. The Handbag group comprised four websites targeting female audiences: getlippy.com (high fashion), allaboutyou.com (fashion and lifestyle), gomamatoday.com (pregnancy), and handbag.com.
Woolworths and Ladybird brands
On 2 February 2009, the brothers' Shop Direct Group acquired the Woolworths brand along with Ladybird children's clothing names from Deloitte, administrators of the defunct Woolworths Group. In July 2021, ownership of the British and Irish Woolworths brands was transferred to Germany's Woolworth, while The Very Group retained control over Ladybird.
Newspapers
Numerous publishing assets are managed through the Jersey-based entity Press Holdings.
The European
In 1992, the Barclay brothers ventured into the newspaper industry by purchasing The European, which had previously belonged to Robert Maxwell. This weekly publication was repositioned as an upscale business tabloid before ceasing operations in 1998.
The Scotsman
The Barclays expanded their media portfolio in 1995 by acquiring The Scotsman. The following year, they appointed Andrew Neil, former editor of Sunday Times, to manage their publishing assets. After a decade of ownership, on 19 December 2005, they divested The Scotsman Publications Ltd—then under the Press Holdings Group umbrella—to Johnston Press for £160 million. Their intention was to redeploy the funds into other business areas. Over the course of their stewardship, The Scotsman experienced seven editorial changes within nine years.
Sunday Business
In 1998, the Barclay brothers acquired and relaunched the Sunday Business newspaper with Jeff Randall as editor. This publication evolved into the weekly magazine The Business in 2006 before being integrated into The Spectator two years later.
The Telegraph Media Group
The Barclays secured ownership of The Telegraph Group—now known as Telegraph Media Group—in July 2004, acquiring titles such as The Daily Telegraph, The Sunday Telegraph, and The Spectator. This followed a competitive bidding process against Hollinger Inc., led by businessman Conrad Black. An American judge publicly criticized the Barclays for insufficient transparency during this transaction, a statement that David Barclay publicly disputed.
Their period at Telegraph Media Group involved extensive organizational changes. In 2006, CEO Murdoch MacLennan implemented layoffs affecting over 100 journalists, triggering threats of industrial action from the National Union of Journalists. Editorial leadership underwent several shifts: in 2005, Dominic Lawson was succeeded by Sarah Sands, who was replaced by Patience Wheatcroft in 2006; a year later, Ian McGregor took over. In February 2015, Chief Political Correspondent Peter Oborne resigned due to conflicts over editorial direction. Between October 2013 and April 2015, Jason Seiken held the role of editor-in-chief and chief content officer.
By October 2019, amid rumors of financial strain, the Barclays began exploring options to sell the Telegraph Group. Subsequently, on 7 June 2023, following disputes concerning nearly £1 billion in outstanding debts, the Daily and Sunday Telegraph, alongside other assets, were put up for sale by AlixPartners. This firm had been appointed by Bank of Scotland as the official receiver to seize shares owned by the Barclay family in the holding company that controls these national newspapers and The Spectator.
Fraud and tax avoidance
In 2024, an investigation by The Economist revealed that the Barclay brothers were involved in fraudulent activities and tax evasion linked to a transaction from the 1970s that prevented their bankruptcy. The report also disclosed that Frederick Barclay unlawfully hid assets from a bankruptcy court, constituting a criminal offense.
Allegations of Tax Exile Status
The Guardian labeled the Barclay brothers as tax exiles. Although they split their time living in Monaco, their business operations are managed from an office based in the United Kingdom. Frederick Barclay explained that his residence abroad was motivated by health concerns. The BBC's Panorama program in 2012 examined the corporate tax practices of the Ritz Hotel, which the brothers acquired and renovated in 1995, uncovering that the hotel legally avoided paying UK corporation tax for 17 consecutive years by utilizing available reliefs.
Disputes Involving Sark and Brecqhou
In 1993, the Barclays acquired the tenancy of Brecqhou, an island neighboring Sark in the Channel Islands. Their residence there is a mock-Gothic castle designed by Quinlan Terry, featuring granite walls, battlements, two swimming pools, and a helipad. Since purchasing Brecqhou, they have been involved in legal conflicts with Sark’s authorities concerning matters such as restrictions on motor vehicles and have pursued political autonomy for Brecqhou.
During the mid-1990s, the Barclays contested Sark’s inheritance laws at the European Court of Human Rights, aiming to distribute their estate equally among four children rather than exclusively to David Barclay’s eldest son. This challenge led Sark to revise its inheritance legislation accordingly. In 2002, disputing what they considered excessive property taxation despite their contribution to maintaining local infrastructure, the Barclays compelled Sark officials to lower their tax obligations.
Their legal interventions contributed to Sark abolishing its feudal government system after 443 years in 2008, replacing it with a 30-member elected chamber ratified by the Privy Council. Following local elections that did not favor candidates endorsed by the Barclays, the brothers retracted investments—including hospitality ventures—resulting in approximately 170 job losses.
After these elections, they challenged the continued role of unelected officials—the seigneur and seneschal—in Sark’s governance at the UK Supreme Court on human rights grounds. Although their appeal was rejected, they intended to pursue further action before the European Court of Human Rights.
On 28 March 2012, BBC Radio 4’s Today program reported on community protests over alleged intimidation tactics by representatives of the Barclays after a local doctor left Sark following adverse media coverage linked to their newspaper. The departure followed an incident where the doctor chose to transport a patient experiencing a seizure via boat instead of using the Barclays’ helicopter. Despite backing from both the patient’s relatives and the British Medical Association, this doctor’s exit left Sark without medical services.
Surveillance Incident at The Ritz Hotel
On 25 February 2020, London’s High Court heard that Frederick Barclay and his daughter Amanda had been covertly monitored for several months after David Barclay’s sons—Alistair, Aidan, and Howard—installed listening devices in the Ritz Hotel conservatory. Alistair Barclay was observed handling one such suspected bugging apparatus. By February 2020, Aidan Barclay, his son Andrew, and two additional brothers faced legal proceedings related to unauthorized use of private information, breaches of confidence, and violations of data protection laws. CCTV footage released by Frederick on 18 May 2020 depicted Alistair with a device inside the Ritz conservatory "where Sir Frederick conducted business meetings and smoked cigars." Court records disclosed that a second listening device had been provided by private investigation company Quest Global Limited.