John Lewis Partnership Plc is being advised by Robey Warshaw and Rothschild as the British retailer considers a controversial stake sale to raise cash, according to people familiar with the matter.
(Bloomberg) — John Lewis Partnership Plc is being advised by Robey Warshaw and Rothschild as the British retailer considers a controversial stake sale to raise cash, according to people familiar with the matter.
Both Robey Warshaw, a boutique bank that employs former UK Chancellor of the Exchequer George Osborne, and Rothschild have existing relationships with John Lewis, the people said, asking not to be named as the details aren’t public. Both banks are providing advice on a potential minority stake in the chain, the people added.
Still, it is unclear if the company will proceed with the early-stage considerations, which are part of a broader turnaround initiative by Chairman Sharon White, they said.
John Lewis has been owned by its employees, known as partners, for more than seven decades, handing workers a portion of its profits in the form of an annual bonus. Selling a minority stake is unprecedented and would require a change to the company’s constitution, to be voted on by its partnership council, a group of about 60 staff. White will face hurdles making a convincing case for the company needing money in return for staff ceding any control.
John Lewis has £1 billion of cash and net debt of £1.7 billion, according to its results for the year to Jan. 28.
Read More: John Lewis Boss Tries to Reassure UK Public Over Stake Sale Talk
White, the former Ofcom chief executive officer, took over as chairman of John Lewis in 2020. So far, she has cut staff, closed stores and sold assets in a turnaround effort. Earlier this month, John Lewis — which also owns upmarket grocery chain Waitrose — reported a £234 million loss and canceled its employee bonus for the second time in three years.
John Lewis declined to comment on its advisers, but said via email: “We keep under review our future funding needs so we have options to fuel the next stage of our growth plan, but nothing is happening in the short term.”
Rothschild and Robey Warshaw declined to comment.
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