John Lewis mulls end to 100% staff ownership structure
To sell a minority stake, the group would need to change its constitution which would require a two thirds vote in favour by its partnership council
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John Lewis is considering diluting its 100% staff ownership structure in a bid to raise investment after the business faced a year of heavy losses.
According to The Sunday Times, chairwoman Dame Sharon White is reportedly in the early stages of exploring a proposal to change its partnership structure in a bid to raise between £1bn and £2bn of new investment.
The report said the company would only consider selling a minority stake in the business however, and that its priority would be to maintain majority employee ownership.
The BBC also reported that discussions were at “very, very early stages” and the move may not eventually happen.
To sell a minority stake, the group would need to change its constitution which would require a two thirds vote in favour by its partnership council, a group of around 60 staff.
The company has been 100% owned by its employees for more than 70 years, after it was put into a trust in 1950 by John Spedan Lewis, son of the group’s founder.
John Lewis has been contacted for further comment regarding the reports.
Last week, John Lewis reported its losses fell to £234m in its full-year results, down from a loss of £27m the prior year, with the group axing its staff bonus for a second time and warning of future job losses.
It comes as the impact of inflation was “felt across the business”, adding an extra £179m to its costs over the year. White said that shoppers had also “felt the pain of inflation” over the period, with sales dipping by 2% to £12.25bn.
In light of these results, the group axed its staff bonus for the second time in three years, as White said she was “sorry that the loss means we won’t be able to share a bonus this year or do as much as we would like on pay”.
The group also warned of future job losses, with White adding: “As we need to become more efficient and productive, that will have an impact on our number of partners. That’s a massive regret to me personally. It would be difficult enough in any business.”
