Nearly 2,000 staff members at Britain's largest toy retailer, The Entertainer, are poised to receive tax-free bonuses following the founders' decision to transfer ownership of their retail empire to them.
Gary Grant has handed over complete ownership of Teal Group Holdings, previously held jointly with his wife Catherine, to an employee ownership trust, as reported by .
The transaction, scheduled for completion in September, will see 1,900 workers take control of The Entertainer alongside Early Learning Centre and Addo Play.
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Grant launched his inaugural store with his wife in 1981 at the age of 23 and now oversees an empire encompassing 160 outlets nationwide.
As trust beneficiaries, staff members will receive rewards through tax-free bonuses linked to the company's future profit generation.
The group's most recent published accounts show it secured a pre-tax profit of £6.6m in the year ending 27 January, 2024.
Upon completion of the arrangement, employees will also gain influence over the group's strategic direction.
A newly established Colleague Advisory Board will help develop policies, exchange views and concepts, and will feature a representative on the three-member Trust Board.
'This is a significant decision for the family'
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Gary Grant, who serves as executive chairman of TEAL Group Holdings, said: "Today marks a momentous day for the Grant family.
"It feels like only yesterday that my wife Catherine and I opened our first store in Amersham, and we could only have dreamed what heights the business would reach.
"Over the last 44 years, we have invested our working lives into this business. All our children are shareholders, and our two oldest sons joined to work alongside us, 20 years ago – so it's truly a family business.
"This is a significant decision for the family, and one we haven't taken lightly, but it feels like the right time to transfer our entire shareholding into an Employee Ownership Trust.
"We'd like to send our sincere thanks to all our employees, who have worked hard to make The Entertainer what it is today.
"When we started the business, we had a vision of keeping an unwavering focus on children and community through creating memories, inspiring wonder and delivering outstanding service.
"We couldn't be more proud that this still remains at the heart of the business today, thanks to the daily enthusiasm of our staff – many of whom have worked for us for many years.
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"Because of this, ensuring our employees have a place in the group's future is hugely important to us.
"The business is in strong hands with Andrew Murphy and his team at the helm and we wish them all the very best as they take The Entertainer through this exciting next chapter of growth."
Throughout the company's financial year ending January 2024, the founders received dividend payments totalling £15.62m. Over the same period, the group's turnover declined from £2474m to £238.2m.
'New structure will bring us even closer as a business'
Group chief executive Andrew Murphy added: "What the Grant family have built is a true British success story – all the more impressive for having consistently championed the belief that business can be a force for good across the communities they serve.
"I have learned so much from Gary and the Grant family over the last two years and have thoroughly enjoyed working with them as we took the business into a new phase of growth both in the 海角视频 and internationally.
"The group's operational and financial strength provides a solid foundation for future success with a clear growth strategy, a dedicated and passionate team and a fantastic product offer.
"Since joining in 2023, I am proud of the strong leadership team we've built to deliver our 'play to win' strategy and it is this team which will now provide continuity to our employees and trading partners as we transition into our new EOT ownership model.
"I know that our new structure will bring us even closer as a business and will provide our hard-working employees with a sense of opportunity, accountability and belonging as we work to create more memories, inspire wonder and deliver outstanding customer service. I am hugely excited for what lies ahead."
The group's most recent financial statements are scheduled to be submitted to Companies House before the end of October. During the twelve months to January 2024, its workforce decreased from 2,068 to 1,958 employees.
The Entertainer joins John Lewis and Go Ape
James de la Vingne, chief executive of the Employee Ownership Association, commented: "It's always an exciting time when a major high street brand takes the bold move to become employee owned.
"That's why I'm delighted to welcome The Entertainer not only to employee ownership, but as a trustee member of the EOA.
"We're seeing a growing trend for retailers making the move to employee ownership alongside calls to help save the high street.
"To my mind, a key piece of the solution is employee ownership. Businesses like The Entertainer and fellow eoa trustee members John Lewis Partnership, Richer Sounds, and Go Ape are helping to future-proof beloved brands, root jobs in local communities, and inject wealth into regional economies."
"This is a bold and brilliant commitment to shared success and a stake in the future for the people who make the business what it is, arriving at a time when many retailers are rethinking what long-term success looks like.
"I have no doubt that other familiar brands will follow The Entertainer's example of what's possible.
"The future of the high street is employee ownership, and the future is already happening."