The UK’s largest toy retail chain, The Entertainer, is set to transfer its full ownership to an employee ownership trust. This significant move, spearheaded by founder Gary Grant, aims to preserve the company’s core values and directly benefit its 1,900 employees.
Key Takeaways
- Employees will share in profits through tax-free bonuses.
- Staff will gain a voice in company decisions via an advisory board.
- The Grant family will be compensated for their ownership stake over time.
- First employee rewards are anticipated by January 2027.
A New Era of Employee Ownership
Founder Gary Grant has chosen the employee ownership model as a way to safeguard the company’s ethos and ensure its workforce reaps the rewards of its success. Under this new structure, the 1,900 employees of The Entertainer will become beneficiaries of the trust. This means they will receive tax-free bonuses derived from company profits, directly linking their financial well-being to the business’s performance.
Financial Structure and Future Rewards
The transition involves the Grant family being paid for their ownership stake over a period, with payments funded by the company’s profits. This phased approach ensures a stable financial footing for the business as it embarks on this new ownership model. Staff are expected to see the tangible benefits of this change, with the first profit-related rewards anticipated by January 2027.
Company Performance and Partnerships
Last year, The Entertainer reported pre-tax profits of £6.7 million. The company operates a substantial network of 160 stores across the UK. Furthermore, it maintains valuable partnerships with other major retailers, including M&S and Tesco, highlighting its established presence and influence within the retail sector.
Sources
- Major retail chain to be put into an employee ownership trust, The Independent.
