Latest news with #toy shop
Yahoo
6 days ago
- Business
- Yahoo
Britain's biggest toy shop chain handed over to staff
The founder of Britain's biggest toy shop chain has handed the company over to its employees. Gary Grant, founder of The Entertainer, is preparing to transfer his family's 100pc ownership of the firm to an employee ownership trust (EOT), with the transfer to be completed next month. The move exempts his family from potential death duties ahead of Rachel Reeves's inheritance tax (IHT) raid. The retailer said the step would 'ensure the group remains independent with its employees as beneficiaries, while preserving both the family's legacy and the family feel of the business'. It comes amid a shake-up of IHT rules by the Government, which will cap tax relief on family businesses handed down to descendants at £1m from April next year, resulting in higher bills for those inheriting businesses. Under the previous system, company owners could leave assets to their families without paying death duties. The reforms, announced by Rachel Reeves, the Chancellor, in her maiden Budget last October, were designed to clamp down on tax avoidance and raise money for public services. However, they have outraged the owners of many family businesses, who argue that the changes will result in soaring IHT bills that could force their descendants to sell up. While the change at The Entertainer will allow the Grant family to avoid higher death duties, it is understood that exempting the company from IHT was not the sole motivating factor in moving the toy chain into employee ownership. Mr Grant said the decision had not been 'taken lightly'. He added: '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.' Under the EOT model, a controlling stake in The Entertainer will transfer to a trust which is indirectly owned by the employees, removing the need for staff to actually purchase shares themselves. The Grant family will receive payments for the business out of its future profits, although the company did not disclose a valuation. Any proceeds received by the Grant family will be tax-free. Advocates of employee ownership say it rewards staff better, increases loyalty and productivity. Examples of prominent businesses that use this model include the John Lewis Partnership and retail chain Richer Sounds. James de la Vingne, the chief executive of the Employee Ownership Association, said there was 'a growing trend for retailers making the move to employee ownership alongside calls to help save the high street'. Founded in Buckinghamshire in 1981, The Entertainer today runs more than 160 stores across the country and over 1,000 concessions in stores such as Tesco, Matalan and Marks & Spencer. As well as its eponymous stores, it owns the Early Learning Centre and Addo brands. The Grant family were paid a £15.62m divided during 2023, according to the latest available accounts for The Entertainer's parent company Teal Group Holdings, despite a fall in both sales and profits. Last November, Andrew Murphy, The Entertainer's chief executive, said the company had been forced to cancel two new store openings because of higher National Insurance contributions levied on employers in Ms Reeves's Budget. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
11-08-2025
- Business
- Telegraph
Britain's biggest toy shop chain handed over to staff
The founder of Britain's biggest toy shop chain has handed the company over to its employees. Gary Grant, founder of The Entertainer, is preparing to transfer his family's 100pc ownership of the firm to an employee ownership trust (EOT), with the transfer to be completed next month. The move exempts his family from potential death duties ahead of Rachel Reeves's inheritance tax (IHT) raid. The retailer said the step would 'ensure the group remains independent with its employees as beneficiaries, while preserving both the family's legacy and the family feel of the business'. It comes amid a shake-up of IHT rules by the Government, which will cap tax relief on family businesses handed down to descendants at £1m from April next year, resulting in higher bills for those inheriting businesses. Under the previous system, company owners could leave assets to their families without paying death duties. The reforms, announced by Rachel Reeves, the Chancellor, in her maiden Budget last October, were designed to clamp down on tax avoidance and raise money for public services. However, they have outraged the owners of many family businesses, who argue that the changes will result in soaring IHT bills that could force their descendants to sell up. While the change at The Entertainer will allow the Grant family to avoid higher death duties, it is understood that exempting the company from IHT was not the sole motivating factor in moving the toy chain into employee ownership. Mr Grant said the decision had not been 'taken lightly'. He added: '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.' Under the EOT model, a controlling stake in The Entertainer will transfer to a trust which is indirectly owned by the employees, removing the need for staff to actually purchase shares themselves. The Grant family will receive payments for the business out of its future profits, although the company did not disclose a valuation. Any proceeds received by the Grant family will be tax-free. Advocates of employee ownership say it rewards staff better, increases loyalty and productivity. Examples of prominent businesses that use this model include the John Lewis Partnership and retail chain Richer Sounds. James de la Vingne, the chief executive of the Employee Ownership Association, said there was 'a growing trend for retailers making the move to employee ownership alongside calls to help save the high street'. Founded in Buckinghamshire in 1981, The Entertainer today runs more than 160 stores across the country and over 1,000 concessions in stores such as Tesco, Matalan and Marks & Spencer. As well as its eponymous stores, it owns the Early Learning Centre and Addo brands. The Grant family were paid a £15.62m divided during 2023, according to the latest available accounts for The Entertainer's parent company Teal Group Holdings, despite a fall in both sales and profits. Last November, Andrew Murphy, The Entertainer's chief executive, said the company had been forced to cancel two new store openings because of higher National Insurance contributions levied on employers in Ms Reeves's Budget.
The Guardian
11-08-2025
- Business
- The Guardian
The Entertainer founder to hand the UK's biggest toy shop chain over to staff
The family behind Britain's biggest toy shop chain The Entertainer is handing over ownership of the business to their 1,900 employees The retailer, which also includes the Early Learning Centre and Addo brands, will being transferred into a trust by the end of September, with payments to the family coming out of future profits. The valuation of the company has not been revealed. A newly created employee advisory board will have influence over the future direction of the group and staff will be rewarded through tax-free bonuses based on the amount of profit the business generates. Founded in 1981 by Gary and Catherine Grant, The Entertainer has grown from just one shop in Amersham, Buckinghamshire, to 160 stores and more than 1,000 concessions in the UK in other retailers including Tesco and Marks & Spencer. It also trades online and overseas. Gary Grant, who ran the business for many years until he was replaced by the former John Lewis executive Andrew Murphy in 2023, is to step down as chair in September when the deal completes. Grant's sons, who both work at The Entertainer, will also step away at that time. Murphy's experience at the UK's biggest employee-owned business is expected to help shape the future of The Entertainer. Grant 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.' He added: '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.' The Entertainer is joining hundreds of other UK businesses including the retailer Richer Sounds and the vegetable-box seller Riverford that have handed control to staff. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion James de la Vingne, the chief executive of the Employee Ownership Association, said shifting to staff ownership could 'futureproof beloved brands, root jobs in local communities and inject wealth into regional economies'. He added: '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.'
