John Lewis Partnership Plc may dilute its famous employee-owned structure to raise new investment as UK retail conditions worsen, the Times reported, without saying where it got the information.
(Bloomberg) —
John Lewis Partnership Plc may dilute its famous employee-owned structure to raise new investment as UK retail conditions worsen, the Times reported, without saying where it got the information.
The company, which owns the high-end grocery chain Waitrose as well as its eponymous department stores, may explore a change in the company’s mutual structure so it can raise at least £1 billion ($1.2 billion) of new investment, according to the Times.
A minority stake may require a change to the firm’s constitution. John Lewis has been employee-owned for more than seven decades.
The plan is being overseen by chairwoman Sharon White, who was encouraged toward the idea of selling a minority stake in the core business by finance chief Bérangère Michel, according to the Times.
“We’ve always said we would seek partnerships to help fund our transformation and exciting growth plans,” a spokesperson for John Lewis said in an emailed statement.
“We’ve done this with Ocado in the past and now with abrdn. Our partners, who own the business, will be the first to hear about any developments.”
On Thursday, John Lewis reported a £234 million loss, canceled its employee bonus for the second time in three years, and warned of new job cuts among the 80,000 partners who co-own the business.
The company is losing ground to profitable competitor Marks & Spencer Group Plc, which recently reported its best-ever market share in food retailing.
Tables Turn in the £20 Billion Fight for Britain’s Middle Class
–With assistance from Katie Linsell.
(Updates with company statement in fifth paragraph)
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