John Lewis plans changes in staff-owned structure to raise funds

John Lewis Partnership is reportedly considering plans to change to its employee-owned business structure, hoping to sell a minority stake to raise much-needed funds.

The Sunday Times, which first reported the move, said the group looks to raise up to £2 billion.

“This would be to secure the partnership model and ensure co-ownership continues,” the paper cited a source as saying. “There could be a shareholder but partners would still own the majority.”

The group, which runs John Lewis department stores and Waitrose supermarkets, has struggled to make a profit in recent years due to the costs of developing its online offering, tough competition and uncertain economic conditions.

Last week, the group reported a 2 per cent year on year decline in sales for the 2022-23 fiscal, with pre-tax loss extending to £234m, compared to the loss of £27m last year.

The group has also created the new role of the chief executive last week, announcing the appointment of Nish Kankiwala, to “drive performance and profitability day to day”.

The Sunday Times report said the plan to raise funds through stake sales is led by chairman Sharon White.

The move would require a change to the constitution of the John Lewis Partnership, which has been 100 per cent owned by its staff since 1950.