Bury St Edmunds based Denny Bros hands over majority stake in company to employees
Employees at a renowned and previously family-owned business have been given a majority stake in the company as its owners prepare for the future.
Bury St Edmunds-based Denny Bros Group has restructured its ownership so that a majority shareholding is now held in trust for the benefit of the employees.
A new company, Denny Bros Trustee Ltd, has been formed to administer the trust while chairman, Barry Denny, and managing director, Graham Denny retain a minority shareholding.
The group, founded in 1945 by brothers Douglas and Russell, reached its 75th anniversary of trading last year and has made the move to safeguard its independent future.
Managing director, Graham Denny, said: “In the last few years, we have come to the realisation that we needed to develop a long-term plan and address what is possibility the toughest responsibility for all business owners to deal with – to plan for our own succession.
Traditional options such as selling the business did not appeal as we would lose our all- important independence and we worried that new owners might make drastic changes.
“We pride ourselves on our reputation for innovation and when we discovered the Employee Ownership Trust, it immediately appealed as an innovative way to address the question of succession, giving our staff transparency and reassurance moving forward as well as placing them at the heart of the business.
“We also think staff will enjoy knowing that they indirectly own the company they are working for – collectively sharing in the success their hard work brings.”
An Employee Ownership Trust is currently used by more than 500 UK businesses, including John Lewis, and is an arrangement where employees indirectly become the owners.
Comprising of 11 companies, the Denny Bros Group is best known for its printed products and in particular the Fix-A-Form booklet labels.
Its other activities cover everything from engineering, tool and die making, signs and nameplates, conference facilities, property management and machinery sales.