The UK’s biggest independent toy retailer is being taken from private ownership and will be owned by its employees, who will share in the company’s profits.
The founder of The Entertainer chain, Gary Grant, is putting the future of the business in the control of its 1,900 employees.
The company operates more than 160 shops as well as concessions in Tesco, Matalan and M&S.
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As a result of the ownership changes, employees will be rewarded through tax-free bonuses based on the profits generated in the future.
To help employees shape policies and share ideas, a colleague advisory board will be created
Direction of the company will be overseen by a three-person trust, one of whom will be a representative of the staff board. That trust will own 100% of the company.
Current shareholders, the Grant family, will be compensated for the sale of their stake from future profits of the business.
It’s being done to ensure the business, which also owns the Early Learning Centre and Addo Play, remains independent and to preserve the family legacy and feel of the business.
‘A growing trend’
It’s part of what’s being described by the chief executive of the Employee Ownership Association, James de la Vingne, as a “growing trend” for retailers.
“We’re seeing a growing trend for retailers making the move to employee ownership alongside calls to help save the high street,” he said.
Other businesses operating such a model include the John Lewis Partnership, home entertainment retailer Richer Sounds, and outdoor adventure company Go Ape.
“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,” Mr de la Vingne added.
What is The Entertainer?
The company was founded in 1981 in Buckinghamshire by Gary and Catherine Grant.
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It’s also a designer, sourcer, developer and wholesaler of toys across multiple international markets.
