A Scunthorpe furniture manufacturer that has traded for more than 180 years is being taken over by its employees.
Lebus Upholstery and Lebus Furniture is to be headed by an employee ownership trust with immediate effect, adding jobs in the process.
Directors and management are to remain in place and the move secures 480 roles and a strong supply chain.
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A spokesperson for the directors said: “Private equity was not something we wanted to consider and a trade sale, while attractive to shareholders, would not have guaranteed the security and continued employment of many of our colleagues who have made such great contributions to the success of the business in recent years. We also wanted to remain within the Scunthorpe area and continue to be a major employer within the town.
“The EOT gave us the perfect compromise. It ensures the continuity and integrity of the business, while fully engaging a committed workforce in the knowledge that they will all share in the future success of the company. It also reassures our customer base that the business has taken steps to protect both its employees and supply chain for the long term.”
The company is based on a site spanning more than 5.5 acres of Queensway Industrial Estate, and is considered to be one of the largest one-site operations of its kind in the country.
It operates from a 250,000 sq ft factory, supplying a wide range of furniture retailers across the 海角视频 and Ireland.
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Figures for 2020 showed turnover dropped from £43.2 million to £34.2 million, but profitability was maintained - albeit down from £2.6 million to £2.2 million - as it weathered manufacturing closures triggered by Covid-19. Sales peaked once retail channels re-opened as pent up demand and an increased appetite for home improvement materialised.
EOTs were established under the Finance Act 2014, encouraging employee ownership as a response to the Nuttall Review. The purchase of shares is funded through the business itself, following a valuation.
Details have not been disclosed.
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Cllr Rob Waltham, leader of North Lincolnshire Council, has welcomed the move. He said: “This is great news for the area – safeguarding hundreds of jobs at a major manufacturer and more in the supply chain.
“This provides a real vote of confidence in the hard working and dedicated staff and in the local economy.
“We will continue to work with Lebus and look forward to them being even more successful in the coming years.”
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