John Lewis has announced plans to repay £300 million on government loans after a strong Christmas deal.
Department stores will pay their loans two months before they are due to be repaid, thanks to stronger than expected sales over the Christmas period.
In a statement, John Lewis said: “We believe the partnership is well liquid despite headwinds last year, when John Lewis’s store was closed for several months and future trading volatility was closed (to pay off the loan earlier). )”
“People trading, including Black Friday and Christmas period, survived better than expected, and as a result, we expect to be ahead of the profit guidance that provides annual profits in the six-month results last September. There, the most likely outcome is a small loss or small profit from 2020-21.”
The department store says it will pay off the loan, but it still refuses to repay the business rate relief it receives.
In November, the group revealed plans for a £300 million cost-cutting drive.
“We’re looking forward to seeing you in the world,” said Sharon White, chairman of the John Lewis Partnership. To achieve this, we need to be agile and able to quickly adapt to our customers’ changing needs.
“Losing a partner is extremely difficult as an employee-owned business. Whenever possible, we try to find new roles in the partnership. We provide the best possible support and retraining opportunities for partners leaving us. I will provide it.”
