Family hands over ownership of Grantham bakery Watkin's to its staff
The employees of popular Grantham bakery and butchers Watkin's have taken control of the business.
The Watkin family, which set up the business more than a century ago, formally handed over ownership of the bakery to the 50 employees yesterday (Wednesday) through an Employee Ownership Trust (EOT).
Richard Watkin, the fourth generation of the Watkin family involved in the 110-year-old business, said he wanted to secure its future and keep it in the town for many more years to come.
Mr Watkin, who has been involved in the business for around 30 years, said his own children were involved in other ventures and had not shown an interest in continuing with the family firm.
Mr Watkin will continue to have a hand in the business as a member of the board of directors which includes three members of staff and an independent member.
He said: "There is a chap who has worked for us for 47 years and others in their 30s who have been with us since they were15 so it's very much a family set-up.
"I have set up a trust which holds the shares for the benefit of the employees. The directors will make decisions in the interests of the employees and the business."
Mr Watkin said that an EOT allows the company to share its profits with the employees so they can get tax-free payments on top of their wages.
He added: "I think it's a positive thing and a nice thing to do. It gives me a warm and fuzzy feeling."
Mr Watkin said he was not comfortable with the idea of eventually selling the business on to a third party which might make changes.
"For me it's all about safeguarding the future of the the employees and helping Watkin's to keep on doing what it does."
The business was originally set up by Mr Watkin's great grandfather in 1912. For some time there was a second shop in Market Place, but the business is now based on one site in Westgate.
Mr Watkin said: "I am more than confident that the people we have will do a fantastic job with a little bit of guidance."
He says he will keep a hand in at the shop and still get up early in the mornings to help make the sausage rolls.
He says the EOT will allow the staff to share in the good fortune of the business. "It's a lovely way of making people feel a part of the business which is what they have been doing anyway. It's a way of paying them back for all their efforts.
"I think this was the best way to guarantee the future of the shop."
In a Facebook post, Watkin's said: "An Employee Ownership Trust has been set up to ensure Grantham’s most loved shop continues to serve the people of the town for generations to come. Local people serving local people."