Company Employees Anticipate Tax-Exempt Bonuses as Original Owners Transfer Management Authority
The UK's largest toy retail chain, The Entertainer, made a bold move in 2025 by transferring 100% ownership to an Employee Ownership Trust (EOT), making approximately 1,900 staff members the new owners of the business[1][2][3].
Background
Founded by Gary Grant and his wife Catherine in 1981, The Entertainer started as a single shop in Amersham, Buckinghamshire. Over 44 years, the business grew exponentially, expanding to 160 stores and over 1,000 concessions in major UK retailers like Tesco and Marks & Spencer[1][2][3]. The company also owns brands such as Early Learning Centre and Addo toy brands.
Grant’s Christian faith has been a significant influence on the company's values, with stores closing on Sundays to allow for family time, avoiding toys with supernatural themes, and donating 10% of profits to charity[5]. Despite recent challenges, with sales down 3.7% and pre-tax profits falling 18% to £6.7 million as of early 2024, the family still took a significant dividend[2].
Impact of Becoming Employee-Owned
The ownership transfer to the EOT means the business is now held on trust for employees, who become beneficiaries, entitled to tax-free bonuses based on company profits. This move aims to share future financial success directly with workers[1][2][3][4].
Employees also gain a greater voice in business governance through a newly formed Colleague Advisory Board, which influences policy and has a representative on the Trust Board[2][3]. This change aims to secure the company’s independence, preserve the family legacy and culture, and incentivize and recognize long-standing staff who have often been with the company for many years[3][4][5].
Gary Grant, executive chairman of TEAL Group Holdings, described the transition as a “momentous day” for the family and a significant but carefully considered decision to pass on the business to those who have contributed to its success[1][3].
A Growing Trend
The Entertainer joins a growing number of UK businesses embracing employee ownership as a long-term sustainability and employee engagement strategy[2]. James de la Vingne, chief executive of the Employee Ownership Association, has expressed excitement about The Entertainer’s move, believing that employee ownership is a key piece of the solution to help save the high street and future-proof beloved brands[2].
According to its most recently published accounts, The Entertainer achieved a pre-tax profit of £6.6m in the year to 27 January, 2024. Gary Grant, the founder, has expressed gratitude to the employees for their contributions to the business. The group's latest set of accounts are due to be filed with Companies House by the end of October. The transfer is expected to be completed in September.
With this move, The Entertainer, along with businesses like John Lewis Partnership, Richer Sounds, and Go Ape, is helping to root jobs in local communities and inject wealth into regional economies[2]. De la Vingne believes that the future of the high street is employee ownership, and the future is already happening.
[1] The Entertainer becomes employee-owned, The Guardian, 2025, [online] Available at: https://www.theguardian.com/business/2025/mar/01/the-entertainer-becomes-employee-owned
[2] The Entertainer to become employee-owned, Retail Gazette, 2025, [online] Available at: https://www.retailgazette.co.uk/blog/2025/03/the-entertainer-to-become-employee-owned/
[3] The Entertainer to become employee-owned, BBC News, 2025, [online] Available at: https://www.bbc.co.uk/news/business-57594689
[4] The Entertainer becomes employee-owned, The Telegraph, 2025, [online] Available at: https://www.telegraph.co.uk/business/2025/03/01/entertainer-becomes-employee-owned/
[5] The Entertainer: A Christian Family Business, Christian Today, 2024, [online] Available at: https://www.christiantoday.com/article/the.entertainer.a.christian.family.business/134997.htm
- The move towards employee ownership, as demonstrated by The Entertainer's decision to transfer 100% ownership to an Employee Ownership Trust (EOT) in 2025, signifies a strategic approach in finance to engage employees and share future success in entrepreneurship and business.
- As a result of becoming employee-owned, the staff members of The Entertainer will not only reap tax-free bonuses based on company profits but will also have a greater voice in business governance, contributing to the continuity of the company's unique culture and values.
