It sounds fanciful. Sir Ken Morrison hates mountains of debt, so to think he would throw his lot in with some shadowy private-equity types stretches credulity.
However, buyout tales are the last thing they will want to see in Morrisons’ Bradford boardroom. It is becoming clear this company is extremely vulnerable.
Chief executive Dalton Philips is doing the right things by trying to catch up in online and convenience, but dismal Christmas trading suggests the chain is losing focus on its core estate. Swifter change could take place behind closed doors, but it’s not clear that private equity funds would bite Sir Ken’s hand off or how strongly the Morrison family is angling for change. More likely, activist investor Elliott Associates will do that for them.
One route — funding a deal by borrowing against Morrisons’ long-cherished property portfolio — looks like madness. And, should the chain attract a deep-pocketed buyer, I wonder why they would lean on the expertise of a chap many blame for Morrisons failing to keep pace with technological change in the first place.
