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Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
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The Markets
by Proactive
Proactive UK has moved.
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Retail

John Lewis' former boss says restructuring would be a 'tragedy'

John Lewis’ former boss has said it would be a major blow if the retailer changed its staff-ownership model.

“It would be a tragedy if that occurs,” said Andy Street, the West Midland’s mayor who managed John Lewis between 2007 and 2016.

Since the 1920s, the John Lewis partnership which includes Waitrose has been owned by its employees.

However, the high-street staple said it is considering options to change its structure to raise between £1bn and £2bn of new investment.

John Lewis recently reported it had swung to a loss of £234mln, which forced the retailer to cancel the bonus it usually pays to its partners as well as warning that job cuts are on the way.

Employees have pointed the finger at current leadership for the business struggles.

A poll carried out found that 85% of staff, or partners as John Lewis refers to them, said they were not confident in the company’s ability to deliver its strategy, according to the Sunday Times.

Roughly 1,000 staff members, around 2% of total staff, took part in the poll.

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