The Entertainer, the United Kingdom’s largest independent toy retailer, is embarking on a new chapter as founder Gary Grant hands full ownership of the business to its 1,900 employees through an employee ownership trust, effective September 2025. This significant transition, 44 years after Grant and his wife Catherine opened their first shop in Buckinghamshire, marks a rare move for a major high street chain and is set to reshape the company’s future for both workers and shoppers.
Why it matters:
- The Entertainer’s move to employee ownership is designed to preserve the company’s family culture and Christian values while ensuring its long-term independence and continued commitment to community and staff.
- With over 160 shops and more than 1,000 concessions across the UK—including partnerships with Tesco, Matalan, and Marks & Spencer—the retailer is a major presence on the British high street. The shift to employee ownership gives staff a direct stake in the business, offering them both profit-sharing and a say in how the company is run.
- Industry experts, such as James de la Vingne of the Employee Ownership Association, view the move as part of a growing trend among retailers seeking to safeguard the high street and offer a more inclusive, sustainable business model.
Driving the news:
- Gary Grant, 66, announced that he and his family will transfer 100% of their shareholding in The Entertainer to an employee ownership trust. The transfer is set to complete in September 2025, after which the company’s 1,900 staff will become the new owners.
- The Grant family, who have run the business since 1981, considered several succession options before settling on the trust model. Grant emphasized the desire to "pass on the baton" in a way that preserves the company’s ethos, stating, "If the business had been sold just for money that would not have been passing on the baton in the way in which the family would have wanted."
- The trust structure means employees will share in the company’s profits through bonuses and will have an official voice in company decisions. Meaningful bonus payouts are expected to begin with the financial year ending January 2027, as most of the company’s profits are made in the lead-up to Christmas.
State of play:
- The Entertainer posted pre-tax profits of £6.7 million for the year ending January 2024 and remains debt-free as of August 2025. The company has weathered significant challenges over the years, including the 2008 financial crisis, the Covid pandemic, and the decline of the high street, according to Grant.
- The business’s Christian ethos remains central: stores do not open on Sundays, encouraging staff to spend the day with their families, and 10% of annual profits are donated to charity.
- Nearly 400 employees have worked at The Entertainer for over a decade, and around 50 have served for more than 20 years. The company is known for valuing loyalty and long-term commitment, making it a stable career choice for many.
- Despite a recent freeze on some hiring and postponed expansion plans due to broader economic pressures, there are no plans to close stores. The company’s busiest period remains the run-up to Christmas, when seasonal roles are typically available.
What they’re saying:
- Gary Grant told the BBC, "We would have been very concerned selling to a business that has a completely different set of values to the values of the Entertainer which we've built over the last 44 years. This is a win-win for everybody that we employ."
- Jess Payne, a 10-year employee, said, "Really brave for him and really exciting for us... to know that officially what we say matters and we can contribute to the future success of the business is really exciting."
- Lee Adlam, who has been with the retailer for nearly eight years, called it "just a typical Gary thing... to do," adding, "He's always had employees at heart and their best interest at heart. He's always looking after us."
- Andrew Murphy, the first external CEO appointed two years ago from the John Lewis Partnership, will take over full independent control after the transfer. Murphy acknowledged, "It's a huge responsibility to continue the legacy and not just deliver success but do it in a way which they (the family) would be proud."
- James de la Vingne of the Employee Ownership Association described the move as "always an exciting time when a major high street brand takes the bold move to become employee-owned." He noted a "growing trend for retailers making the move to employee ownership alongside calls to help save the high street."
By the numbers:
- 1,900 employees will become owners of The Entertainer as of September 2025.
- The company operates over 160 shops and more than 1,000 concessions across the UK, including in Tesco, Matalan, and Marks & Spencer.
- Pre-tax profits for the year ending January 2024 were £6.7 million.
- Nearly 400 employees have served more than 10 years, with about 50 clocking more than 20 years.
- 10% of annual profits are donated to charity.
- The company has no long-term debt and no urgent need for a capital injection as of August 2025.
Zoom in:
- The Entertainer joins the ranks of other employee-owned UK businesses, such as the John Lewis Partnership and Go Ape, which are often cited as models for this kind of transition. The John Lewis Partnership, for example, has around 70,000 staff sharing in company profits.
- The employee ownership trust model means that while the Grant family will be financially rewarded for the transfer of their shareholding (with payouts drawn from future profits), the business cannot be sold off for personal gain, aligning incentives for long-term stability and employee benefit.
- The company’s commitment to its values is evident in its continued closure on Sundays and its charitable giving, both of which are expected to persist under employee ownership.
What to watch:
- The transition is expected to be completed in September 2025, with staff beginning to see the "real rewards" from the 2027 financial year onward.
- Andrew Murphy and his leadership team will steer the company through this transition, aiming to maintain the family legacy while adapting to the new ownership structure.
- The Entertainer’s model may inspire similar moves among other retailers seeking to preserve their high street presence and values in a challenging economic climate.
The bottom line:
The Entertainer’s shift to employee ownership is a landmark event for the UK retail sector, promising to empower workers, preserve a unique company culture, and keep a beloved high street brand thriving in the hands of those who know it best.