Morrisons reported a £1.5bn loss in the first full year under its private equity ownership.
A portion of its £1.5bn pre-tax loss in the 65 weeks to 30 October 2022 was put down to finance costs of £593mln, such as interest payments on external debt.
In comparison, the formerly fourth largest UK grocer reported pre-tax profits of £201mln before one-offs in its final year as a public company, according to the Guardian.
US private equity firm Clayton, Dubilier & Rice bought the company for £7bn in October 2021.
Today’s results however have raised concerns about private equity takeovers and how they can often load businesses with debt.
Before the takeover, Morrisons’ net debt stood at £3.2bn and has since risen to almost £6bn, or £7.5bn if other obligations are included.
Morrisons lost its position as one of the UK’s ‘big 4’ retailers to Aldi, which leapfrogged into fourth place as customers flocked to its cheaper prices in the face of the cost-of-living crisis.