Morrisons plunged to a £1billion loss last year after a surge in debt interest payments linked to its private equity takeover. The business has been hit by a revenue squeeze and spiralling interest payments on their debt.

Graham Watson's insight:

Unlike John Lewis which has returned to profit, Morrisons remains embattled, posting a £1bn loss, largely driven by increasing finance costs incurred as a result of the debt-fuelled takeover. However, the company's underlying profit, after stripping out debt and other 'exceptional' items is still £970m.

As a result, not only has it shed nearly 9,000 jobs but it is no longer the 4th largest grocer retailer in the UK, with Aldi taking its place.

This BBC article offers a look at a firm that has a track record of engaging with its internal stakeholders, notably its workers. The John Lewis Partnership is famous for both for the extent to which its employers participate in its decision-making and its profit-sharing.

However, in this case despite returning to profit, the company have dropped the staff bonus for the second year running, and only for the third time since 1953. This should also prompt thoughts about the impact of this on staff morale, staff motivation and potentially recruitment by the firm.