John Lewis Partnership is reportedly in the process of raising up to £150 million through the sale and leaseback of 12 Waitrose supermarkets, sources close to the matter told Bloomberg on Thursday.
Sources said the marketing campaign for the stores is set to commence next week for supermarkets primarily located in the southern region of England.
They will reportedly come with 20-year inflation-linked leases.
The move comes as the lossmaking, co-operatively owned retailer looks to secure additional capital without access to the public markets.
John Lewis’ losses narrowed in the first half of the latest financial year, though were still substantial at £56.2 million.
This was a 43% improvement compared to the first half of 2022, when the partnership racked up losses to the tune of £99.2 million.
They also came on the back of austere belt-tightening that saw the partnership cancel its traditional Sunday roasts and cooked breakfasts for seasonal Waitrose and John Lewis staff.
John Lewis has been getting creative in shoring up its ongoing losses, even mulling plans to scrap its 100% employee-ownership model.
The group has considered selling a minority stake in the business, though its priority would be to maintain majority employee ownership, according to reports.
In August, John Lewis and Abrdn PLC (LSE:ABDN) jointly submitted planning applications for build-to-rent sites above two Waitrose stores in London, despite local criticism over the small share of affordable housing.