While employee ownership is available in several modes (such as ESOP), Tallgrass offers the EOT model.
Richer Sounds opened in 1978 when Julian Richer, at the age of only 19, opened his first electronics shop near London Bridge. Growing into a chain of 50 retail stores, Richer announced in 2019 that he would sell 60% of the business to his employees in the form of an Employee Ownership Trust.
Background
Richer Sounds, an apt name for its founder Julian Richer, opened its doors in 1978 specializing in high fidelity audio electronics equipment. Located in a small space near London Bridge this shop established the record for highest sales per square foot of any retail outlet in the world in 1994, according to the Guinness Book of Records.
Growing to over 50 stores throughout Britain, Richer Sounds would expand into home cinema, wireless streaming and more. The company donates 15% of profits to charity, saying it is founded on “the ethical principles of being decent, honest and truthful and hopefully [this] runs through everything we do”.
In 2011 Richer Sounds received a prestigious Royal Warrant and won several Retailer of the Year Awards between 2010 and 2022. It is an accredited holder of the Fair Tax Mark for transparency over tax disclosures and is part of the Living Wage Scheme.
Transition to Employee Ownership
In 2013, Richer is quoted as saying he had written into his will the plan to hand shares to his employees after his death. At the time, he said: “It’s important… My life’s work is my legacy and I haven’t got a spoilt child to run the business.”
In 2019, at age 60, Julian Richer formally announced that the company shares would be placed in an Employee Ownership Trust. Each of the 522 employees would pick up £1,000 ($1,808 CDN) for every year served at the firm with an average pay out of £8,000 ($14,464 CDN).
“I have always planned to leave my company in trust on my death for the benefit of the colleagues in the business,” Mr Richer said. “Having hit the ripe old age of 60 in March, I felt the time was right, rather than leaving it until I’m not around, to ensure that the transition goes smoothly and I can be part of it. The company’s banks, suppliers and customers should feel that the move is (hopefully) seamless and Richer Sounds carries on as normal.”
“I have always planned to leave my company in trust on my death for the benefit of the colleagues in the business,” Mr Richer said. “Having hit the ripe old age of 60 in March, I felt the time was right, rather than leaving it until I’m not around, to ensure that the transition goes smoothly and I can be part of it.
