Well done that man "Entertainer founder hands over toy shop"
Discussion
"Entertainer founder hands over toy shop chain to staff"
"The founder of the UK's biggest toy chain, the Entertainer, is handing over control of the business to his 1,900 workers.
Gary Grant opened his first shop with his wife Catherine in 1981 when he was 23. He's now 66, and his multi-million pound empire spans 160 shops across the UK.
He is transferring 100% ownership of the family-owned business to an employee trust which means staff will get a share of the profits and a say in how the firm is run."
https://www.bbc.co.uk/news/articles/cgm2jjwmw9jo
"The founder of the UK's biggest toy chain, the Entertainer, is handing over control of the business to his 1,900 workers.
Gary Grant opened his first shop with his wife Catherine in 1981 when he was 23. He's now 66, and his multi-million pound empire spans 160 shops across the UK.
He is transferring 100% ownership of the family-owned business to an employee trust which means staff will get a share of the profits and a say in how the firm is run."
https://www.bbc.co.uk/news/articles/cgm2jjwmw9jo
bazza white said:
I know the reason but still amazes me they refuse to open Sundays when all you hear is trouble in the high street.
Sounds like an all round decent bloke though. Well done him .
Might change now it has moved to the employee ownership model (and well done him and his wife), but hey, it was their company, they could do what they like.Sounds like an all round decent bloke though. Well done him .
JoshSm said:
Yes, he's not exactly gifting it.
Yes, he's definitely gifting it. He's simply continuing to have a share of future profits that were already his.If you've got £100 and give somebody £90 you'd be a bit miffed if they turned around and said, "That £90 isn't a gift because you've kept £10 for yourself".
Panamax said:
Yes, he's definitely gifting it. He's simply continuing to have a share of future profits that were already his.
"They will receive a payout for the transfer of their 100% shareholding, which will be taken out of the profits over time."That reads as a buyout over an extended period, not a gift.
If someone is giving me a payout in exchange for the transfer of an asset it isn't a gift is it?
JoshSm said:
Panamax said:
Yes, he's definitely gifting it. He's simply continuing to have a share of future profits that were already his.
"They will receive a payout for the transfer of their 100% shareholding, which will be taken out of the profits over time."That reads as a buyout over an extended period, not a gift.
If someone is giving me a payout in exchange for the transfer of an asset it isn't a gift is it?
k it, I'm selling on the open market and fk the staff". Presumably that would be preferable in your book. Rather than the staff getting the asset without really having to shell out anything? You are Jeremy Corbyn AICMFP.
Murph7355 said:
He could, of course, just say" fk it, I'm selling on the open market and fk the staff". Presumably that would be preferable in your book. Rather than the staff getting the asset without really having to shell out anything?
You are Jeremy Corbyn AICMFP.
Are you mental?k it, I'm selling on the open market and fk the staff". Presumably that would be preferable in your book. Rather than the staff getting the asset without really having to shell out anything? You are Jeremy Corbyn AICMFP.
He can dump the thing anyway he wants. Some people seem to think he's given it away. He hasn't. The business is buying him out led by the existing management.
Wrapping it up the way it is helps to maintain it as currently run in a way a third party sale wouldn't have.
In reality most of the staff are seeing very little, a bit like those at John Lewis don't. Nothing they can apparently sell for one.
It's good PR but it's definitely not an act of huge generosity.
Patio said:
Fair play to him!
Just waiting for the DM article to find out what he drives and how much his house is worth
latimer park farm, c350 acres, bought under a charity he runs then leased to him. sounds like a nice tax efficient way. Just waiting for the DM article to find out what he drives and how much his house is worth
great business, makes c£6m and has £37m cash on the books (i suspect he will take that out or gift it)
z4RRSchris said:
Patio said:
Fair play to him!
Just waiting for the DM article to find out what he drives and how much his house is worth
latimer park farm, c350 acres, bought under a charity he runs then leased to him. sounds like a nice tax efficient way. Just waiting for the DM article to find out what he drives and how much his house is worth
great business, makes c£6m and has £37m cash on the books (i suspect he will take that out or gift it)
Started business from scratch and clearly thinks alot about his staff to prioritise them over opening every available minute to claw in every last £
He would be great asset to any govt to advise them on business policy
It's not a gift. A gift would be him not receiving any payment now or in the future. He's getting paid. And by selling to the employees there's a greater likelihood of the company continuing to be a success, thereby increasing the future payouts.
And whilst my understanding of corporate tax law is not comprehensive, I'm pretty sure it avoids Capital Gains Tax.
It's a great think he's done as it means it won't be stripped dry by a PE buyer, but be under no illusion, it is a financially beneficial way of him exiting the business.
And whilst my understanding of corporate tax law is not comprehensive, I'm pretty sure it avoids Capital Gains Tax.
It's a great think he's done as it means it won't be stripped dry by a PE buyer, but be under no illusion, it is a financially beneficial way of him exiting the business.
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