The family firm is transferring its 100 per cent ownership of The Entertainer, Addo and Early Learning Centre to an Employee Ownership Trust
Scores of workers in The Entertainer and Early Learning Centre stores in the Hull area and beyond are set for annual profit windfalls after the founder handed ownership to its staff. Popular toy retailer The Entertainer started life in 1981 with just one shop, but it now has stores across the UK and 1,900 employees.
Now the wider Teal Group – which also owns The Entertainer, Early Learning Centre and Addo Play brands – is being handed over to its staff by owner Gary Grant and his family. And that includes staff at The Entertainer stores in Hull city centre and Beverley.
The transfer of ownership – which is set to be completed by the end of September – means that payments will be made to all the employees based on its profits, essentially giving them a stake in the retailer’s future success. An employee advisory board will be set up, to have influence over the future direction of the group. Staff will get tax-free bonuses according to the amount of profit the business makes.
The firm said that, as beneficiaries of the Trust, employees will have influence over the future direction of the group, sharing both the responsibility and the rewards of having a stake in the company’s success. The Grant family said the decision is the culmination of a long-term succession plan and will ensure the group remains independent with its employees as beneficiaries, while also preserving the family’s legacy and the “family feel” of the business.
Gary Grant, co-founder and 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.
“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.”
The Employee Ownership Association was launched in 1979 as a not-for-profit, politically independent organisation aimed at propelling employee ownership as a force for powering fairer livelihoods and stronger businesses. There are now more than 800 businesses across the UK that have made the move to become employee owned trusts, including Wallace and Gromit creators Aardman Animation, and department store chain John Lewis.
James de la Vingne, chief executive officer, Employee Ownership Association, said: “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 futureproof 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.”
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