The Entertainer, Britain's largest toy shop chain, is set to become employee-owned after founder Gary Grant announced the transfer of 100% ownership to a trust for its 1,900 staff. The deal, expected to complete by the end of September, will see the family receive payments from future profits, though the company's valuation has not been disclosed.
The retailer, which also owns the Early Learning Centre and Addo brands, reported a 3.7% drop in sales to £238.3 million for the year to 27 January 2024, with pre-tax profits falling 18% to £6.7 million. Despite this, the family paid themselves a £15.6 million dividend, their first since 2019.
Under the new structure, an employee advisory board will influence the company's direction, and staff will receive tax-free bonuses linked to profitability. Gary Grant, who founded the business with his wife Catherine in 1981, will step down as chair in September, with his sons also leaving their roles. Former John Lewis executive Andrew Murphy, who became CEO in 2023, will lead the transition.
Grant described the move as a "momentous day" for the family, adding that it felt like the right time to transfer ownership to employees. The Entertainer joins a growing number of UK businesses, including Richer Sounds and Riverford, that have adopted employee ownership models.
James de la Vingne, chief executive of the Employee Ownership Association, praised the decision as a "bold and brilliant commitment to shared success," predicting that more retailers would follow suit.
