The UK’s biggest toy retail chain, the Entertainer, will soon be in the hands of its workers after its founder opted to put the organisation into an employee ownership trust.
Around 1,900 people work at the Entertainer, including hundreds who have worked there for more than a decade and some more than 20 years.
Under the scheme, full ownership of the 160-store company will transfer to a trust which is held on behalf of employees, who will then receive company performance-related profits in the form of tax-free bonuses.
An advisory board also gives employees a voice in the future progress of the firm.
Founder Gary Grant opened the first store in Buckinghamshire in 1981 alongside his wife, with last year’s pre-tax profits for the company, TEAL Group Holdings Limited, standing at £6.7m. The founder and his family will be paid for their ownership stake by way of company profits over a period of time.
“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,” said Mr Grant, adding that his children – two of whom are involved with the business – have “other plans”.
“We would have been very concerned selling to a business that has a completely different set of values to the values of the Entertainer which we’ve built over the last 44 years.
“This is a win-win for everybody that we employ. If the business had been sold just for money that would not have been passing on the baton in the way in which the family would have wanted.”
Mr Grant predicted that staff would see the first rewards of the trust ownership following the end of the financial year January 2027, as much of the firm’s profits come in the run-up to Christmas.
As well as through its stores and website TheToyShop.com, TEAL sells through partnerships with the likes of Tesco, M&S, Matalan and Moonpig.
Chief executive of the Entertainer, Andrew Murphy, was appointed two years ago to the role as a first external leader.
He will lead operational control of the firm once the transfer of ownership to the fund is complete.
“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,” Mr Murphy said.
“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.”