Toy retailer the Entertainer to hand ownership to staff

(Sharecast News) - The Entertainer, the UK's largest toy retailer, is transferring ownership to its employees through an employee ownership trust.

According to the Independent, the move would see full control of the 160-store chain, which employs around 1,900 people, handed to a trust on behalf of staff.

Employees woud receive a share of profits as tax-free bonuses and have a say in the company's future through an advisory board.

Founder Gary Grant, who opened the first store in Buckinghamshire in 1981 with his wife, said the family would be paid for their stake over time from company profits.

TEAL Group Holdings, the retailer's parent company, reported pre-tax profits of �6.7m last year.

Grant said the decision was made to preserve the business's values and avoid a sale to a company with different priorities.

He added that employees were likely to see the first trust-related bonuses after January 2027, as much of the group's profits are made during the Christmas period.

The Entertainer sells toys through its stores, website TheToyShop.com, and partnerships with Tesco, M&S, Matalan and Moonpig.

Chief executive Andrew Murphy, appointed in 2023 as the first external leader of the business, would continue to oversee operations once the ownership transfer is complete.

He described the company as a "true British success story" built on strong operational and financial foundations.

Reporting by Josh White for Sharecast.com.