John Lewis Partnership chair rules out new structure

Dame Sharon White, the chair of John Lewis Partnership, has confirmed the company will “always be owned by staff” after a biannual vote came out in support of her continued leadership. 

In March, it was revealed that White was considering selling a minority stake in the business to bring in investors from outside, which would mean diluting its employee ownership structure.

According to reports in the Sunday Times, some members of the partnership council had requested that a vote of confidence in the leadership that takes place twice each year be held today because they were unhappy about the direction of the business.

However, White has ruled out selling a stake in the company, but said the board would consider external investment in the future if this was needed.

The company suffered a loss of £234 million last year, which also meant employees did not receive a bonus this year.

Speaking at the partners’ meeting today at the Odney Club, a retreat owned by John Lewis, she added: “Our model is the very reason I joined the partnership because I believe profoundly in an approach of kinder capitalism in the 21st century. It’s what makes us special.”

Any future investment would need to be considered as in line with the partnership’s original trust settlement, and would need the full backing of the staff council.

A staff survey in March, shortly after it was announced that partners would not receive a bonus this year, found that 85% were not confident in the company’s ability to deliver its strategy.

John Lewis has said that the employee ownership model – renowned in business circles – will always be at the heart of its business and there is no guarantee it will dilute this with outside investment.

Today the staff council voted on two motions – one on whether the council has confidence in the progress of the partnership under the chair’s leadership over the past year; and the other on whether it can support her to take the business forward.

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Retail expert Mary Portas wrote an open letter to the partnership in March, claiming it had “let go” of its soul as one of the most valued, loved and trusted brands in the UK.

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