The Entertainer becomes employee-owned

Family-run chain of toy shops, The Entertainer, has announced it will be the latest high street brand to become employee-owned.

The chain’s owner, TEAL Group Holdings, which also owns the Early Learning Centre and Addo brands, will transfer to a 100% employee-owned trust (EOT) in September. The move sees the group’s 1,900 staff, including those at The Entertainer store in Stockport town centre take on the entire of the retailer’s shareholding from the Grant family.

Established as an independent toy shop in Amersham, Buckinghamshire in 1981 by Catherine and Gary Grant, where the retailer is still headquartered, it has since grown to 166 stores in the UK, as well as a concession partnership with Tesco and a number of Asian franchises.

The shift from a family business to an employee ownership model is part of a long-term succession plan for The Entertainer to preserve the Grant family’s legacy and retain a family feel in how the business is run. As devout Christians, the Grant’s have kept all stores closed on Sundays, as well as avoiding stocking toys that lean into supernatural themes and donating 10% of profits to charity.

Under the changes, staff will receive greater say in the how the business is run and an annual share of profits. It follows the lead of other high street brands, including Richer Sounds and Lush, that have transitioned to some degree employee ownership in recent years, as well as high street stalwart John Lewis which accounts for 70% of the more than 100,000 employee owners in UK businesses.

Gary Grant, Co-Founder and Executive Chairman, TEAL Group Holdings, said:

“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.”

Andrew Murphy OBE, Group Chief Executive Officer, TEAL Group Holdings and a former John Lewis executive, said:

“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 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.”

Following the move to employee ownership, The Entertainer has become a Trustee member of the Employee Ownership Association (EOA), which represents employee-owned firms throughout the UK.

James de le Vingne, Chief Executive of the EOA, commented:

“This 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.”