Leading hi-fi and TV retail specialists Richer Sounds has transitioned the company to employee ownership. Leading audit, tax and consulting firm RSM advised the company on the complex legal and tax implications involved in the process.
Employees of Richer Sounds will receive a windfall after the retailer’s founder handed over a 60 per cent stake in the company.
Overseeing the transition is David Robinson, Chairman of Richer Sounds. He said, ‘It’s incredibly exciting times and allows our colleagues to feel even more connected to the company. They have a real stake in the success of the business and can take pride in knowing that they are shareholders, building for the future.’
Fiona Bell, RSM Legal LLP partner, who has been working on this project over the past 18 months, alongside the team at leading audit, tax and consulting firm RSM, comments: ‘We’re delighted to have the privilege to work with the Richer Sounds’ team on the successful transition to employee ownership. With RSM’s multidisciplinary approach to client advice and our relevant client experience in this field we were well placed to navigate the company through the complex legal and tax implications. We wish Richer Sounds and its colleagues every success in the future as an EOT.’
Deb Oxley, CEO of the Employee Ownership Association said: ‘We congratulate all at Richer Sounds for taking this step. It will root the business in the communities it serves long term and is a great example of how Employee Ownership can be used to secure a business philosophy, values and independence for the longer term while helping those that supported the company to share in the success that they helped to create.’
Richard Lowe, Head of UK Large Corporate at Barclays Corporate Banking, said: ‘Barclays has supported Richer Sounds with banking facilities for over 20 years, drawing on our industry expertise to help the company adapt and grow in a changing retail environment. This is an exciting new phase for them and we’re proud to have facilitated this innovative shift towards employee ownership.’