John Lewis is considering the dilution of its 100 per cent owned by staff company structure following its second ever full-year loss, according to reports.

The retailer has run with the mutual ownership structure for over 70 years, but the Sunday Times said John Lewis chairwoman Sharon White is in the early stages of exploring a plan to change the structure in a bid to raise between £1 billion to £2 billion of fresh investment.

John Lewis recently halted staff bonuses after recording losses of £234 million in the 2022 financial year.

According to the Times, John Lewis would have to change its structure if it opted to sell a minority stake to raise funds.

Such a decision would mean that money raised through the sale of shares would go towards the business, instead of the longstanding staff bonus scheme which has been a longstanding feature of the company, with no bonuses in 2023 set to be the first no-bonus year for staff since 1953.

Previous losses of £99 million were reported for the first six months of the 2021 financial period.

To avoid an “£18 million overspend”, the retailer also said it would turn down heating and dim lights in its branches and warehouses.

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