Blackwell planning the John Lewis route

Published on Wednesday 8 September 2010 22:19

Blackwell, the privately-owned book chain, has unveiled plans to follow in the footsteps of department store business John Lewis and hand ownership of the company to its staff.

The move comes as the 130-year-old bookseller yesterday announced the closure of its Oxford head office and the relocation of staff to its stores. Some 25 jobs are at risk of redundancy under the cost-cutting measures.

The firm, which in 2002 acquired part of Edinburgh-based peer James Thin after its collapse into administration, hopes to return to profit in the financial year 2011-12 following a string of losses.

Traditional booksellers are facing increased competition from websites like Amazon, and electronic reading devices such as the Sony e-reader.

Book chain Borders UK closed down last year, while Waterstone's, owned by retail giant HMV Group, has reported declining like-for-like sales.

Blackwell's owner Toby Blackwell, the last representative of the founding family, said he was setting up an employee partnership, following the John Lewis model, that will hand control to the company's 949 staff. The move should be completed by December.

He told Bookseller magazine: "I believe that every single one of our people is important, and can, if respected and encouraged, contribute ideas to make Blackwell's more efficient and innovative.

"I have therefore decided to emulate the highly successful John Lewis - and Waitrose - share partnership structure for Blackwell's. I have been studying this in detail and practice."

Blackwell shares are currently split into two classes, A and B. The controlling A shares, which are worth no money but have all the voting rights, are all owned by Blackwell.

The current change concerns the B shares, the wealth shares, which Blackwell is giving to the employee partnership.

The firm has 37 permanent shops and 40 that open temporarily on university campuses at the start of each term.