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Former John Lewis boss Andy Street has said it would be a “tragedy” for the retailer to let go of its current ownership model in which staff own 100 per cent of the company.
It was reported this week that the partnership’s chairwoman, Dame Sharon White, is exploring plans to sell a minority stake in the business to raise money.
But West Midlands Mayor Mr Street, who ran John Lewis from 2007 to 2016, urged the current leadership team to “hold on” to what makes the high street favourite unique.
Speaking to BBC One’s Sunday With Laura Kuenssberg, he acknowledged the company faces financial difficulties but said of the possible ownership change: “It would be a tragedy if that occurred because I think John Lewis goes a bit beyond a shop.
“You can buy the same television in other places is the truth, but John Lewis was about actually a way of doing business, actually showing the market there was a better way almost, and in fact that’s now potentially under threat.
“So I would urge the leadership of John Lewis to think about what’s really at the heart of it, what makes it special, and hold on to that.”
Former Labour business minister Gareth Thomas plans to introduce a Bill to Parliament aimed at helping companies with the same ownership structure as John Lewis remain “owned firmly by British people”.
The Harrow West MP, now shadow international trade minister said he would introduce the Co-operatives (Permanent Shares) Bill on Wednesday.
“It is the route to help John Lewis stay completely employee-owned,” said Mr Thomas. “At the same time, it would potentially help co-operatives and mutuals access significant capital to invest in their businesses, expand the services they offer, and more.
“It will allow co-operatives and mutuals to issue shares that would not change the governance structure of their business. The return for the investor is similar to a traditional loan or a bond in that way. There is a dividend or interest return, but crucially what you don’t give up is significant ownership rights.”
He added: “Basically it is rocket fuel for the co-operative and mutual sector. It would help to provide significant capital investment for them over time without risking fundamental changes in the way their business operates.”
John Lewis, which also owns Waitrose, is currently fully owned by its staff, who receive a share in the profits. Amid tough trading conditions, the firm was said to be exploring the idea of selling a minority stake, according to The Sunday Times, with the firm said to be hoping to raise up to £2bn.
The report said Dame Sharon was considering a potential plan to dilute the partnership structure in order to invest in technology, data analysis and Waitrose’s supply chain.
A John Lewis Group spokesman said: “We’ve always said we would seek partnerships to help fund our transformation and exciting growth plans. We’ve done this with Ocado in the past, and now with abrdn [a £500m deal with the investment firm to build 1,000 homes on sites owned by Waitrose and John Lewis].
“Our partners, who own the business, will be the first to hear about any developments.”
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