What: The 159-years-old department store chain is built as a partnership, a very specific structure in the industry.

Why it is important: While such a capitalistic structure has been an asset in good times, it also needs to be properly managed in the current turnaround, in order to make the most of it.

Nish Kankiwala, the first-ever CEO of John Lewis, faces challenges like surging inflation, poor consumer sentiment, a £234mn annual pre-tax loss and a group net debt of £1.7bn. The retailer's partnership structure, which includes 74,000 employees, limits its financial options.

Kankiwala must address the company's net debt pile while investing in the business and returning it to profitability as part of Chair Dame Sharon White's turnaround plan (already well started with 16 store closures, thousands of redundancies, and new ventures, especially in housing). The company must repay a £50mn loan in December and two bonds worth £300mn each in 2025 and 2034.

Despite the challenges, John Lewis executives are confident in their ability to pay their debts, and the company is in robust financial health with a strong balance sheet and low net debt.

Why John Lewis’ specific structure is both an opportunity and a threat