More than 800 people have been asked to invest in the troubled supermarket in recent months, with a well-placed source saying middle management department heads were asked for £10,000 and department managers £25,000 each. It is understood that the minimum investment required to participate was £2,000. The source said that while the contributions were voluntary, some staff were annoyed because they felt pressured to make a cash contribution to a struggling business at a time when the cost of living was skyrocketing. “People are used to receiving bonuses rather than being asked to invest,” the source said. However, it is understood that those who agreed to invest in Morrisons shares were given a special bonus, equivalent to 60% of the amount they were asked to invest before tax, with several claiming to have invested more. A spokesman said: “The opportunity to invest in the future of Morrisons was incredibly popular across the business with more than 800 colleagues, or more than 90% of those eligible, choosing to invest.” One expert said it is common for staff to be asked to invest as part of private equity deals, with the stakes seen as an incentive to help the business grow. While it is less common to ask employees to participate, he said the wider than usual scope of the Morrisons scheme could be seen as a good thing, allowing more people to benefit from a potential return on their investment. The grocer, which was acquired by US private equity firm Clayton Dubilier & Rice (CD&R) in a deal worth around £7bn last year, last week lost its place as the UK’s fourth largest supermarket chain to the German firm Aldi discounts. Morrisons’ market share is slipping as it opens too little new space and surveys show its prices have become more expensive compared to key rivals. Sales fell by 4.1% in the quarter to September 4, a period when all other major supermarkets except Waitrose increased sales. An industry insider said: “The numbers look bleak. [The product] it doesn’t look exciting and they’ve missed a lot of opportunities.” The source said suppliers were frustrated as the volume of goods sold by the retailer fell. Subscribe to Business Today Get ready for the business day – we’ll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. Trevor Strain, the right-hand man to chief executive David Potts, is understood to have told the business he plans to leave as he wants to look for a top job elsewhere. A source said Strain was unwilling to commit to another five years at the business to see CD&R’s investment plan after joining Morrisons in 2009. In April, Morrisons warned that its profits were likely to take a significant hit this year as the cost of living crisis and disruption from the war in Ukraine weighed on the grocery market. The supermarket chain said “developments in the geopolitical environment” and “continued and increasing inflationary pressures” since early February were weighing on consumer sentiment and spending. The retailer also recently bought McColl’s network of more than 1,000 convenience stores out of management as it moved to protect a wholesale supply deal at the chain. McColl’s had been suffering from financial pressures for some time before its collapse.
