Gary Grant, founder of The Entertainer toy retailer has passed ownership of the business he founded with his wife Catherine in 1981 over to an employee trust.
Teal Group has 1900 employees who work across its own 160 stores, as well as in its 1000 concessions in stores such as Tesco, and in its store and online operations. The employee trust will see each qualifying employee in line for profit sharing and having a say in how the business develops going forward.
Christian Wilson, Employee Ownership & Business Succession partner at law firm Spencer West LLP, comments:
“The Entertainer’s decision to transfer 100 per cent ownership to its 1,900 employees is not just a heart-warming headline – it’s a live demonstration of why the employee ownership trust (EOT) model is gaining momentum in UK retail.
I’ve long argued that EOTs are more than a tax-efficient succession route (though the 0 per cent CGT relief under TCGA 1992 is a powerful enabler). They create a virtuous circle: employees share directly in the rewards of their collective success – up to £3,600 a year tax-free under ITEPA 2003 – and, in turn, they have a vested interest in the company’s long-term health.
The Entertainer’s case is particularly compelling because it couples financial participation with strong values. The business will remain closed on Sundays in line with the Grant family’s ethos, now safeguarded by the trust structure. This demonstrates how EOTs can protect cultural identity as well as commercial independence.
Sceptics sometimes ask whether employee ownership dilutes entrepreneurial drive. My experience is the opposite: when employees are beneficiaries, not just wage-earners, engagement rises, turnover drops, and the business becomes more resilient to external shocks.
In a retail landscape searching for ways to reconnect with both staff and customers, The Entertainer’s move is a reminder that ownership matters – and that the high street may be saved not just by sales, but by shared stewardship.”
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