Ceiling2Floor is the latest brand in Scotland to become employee-owned, opening new opportunities for the three-strong team, based at Sighthill Industrial Estate, to share in its success by being its part-owners.
It comes after founders Brian and Bill Crombie agreed a deal with staff to transition Wetrooms International Group, which owns the trade store chain, to an Employee Ownership Trust (EOT).
Edinburgh regional manager Mark Holmes welcomed the news and said: “Our transition to an EOT is a really positive step.
“While it’s business as usual for us and our customers, the change internally gives our management team greater involvement in the business operations, which is really exciting. I’m looking forward to this new chapter.”
The Crombie brothers have retained a 26% share of the business as part of the deal and will continue to play key roles in its development, with the firm seeking opportunities to expand across the region and throughout Scotland.
Brian said: “This was the logical step for us to take. Most of our staff have been with us for a long time and we’ve a great management team. Becoming an EOT is an investment in them, allowing everyone to share further in the future success of the business.”
Bill added: “The business is in a real period of growth with huge potential to expand significantly over the next five years. We have the right team in place to achieve that.”
Wetrooms International has been guided through the transition to employee ownership by Ownership Associates, with assistance from Reference Point Advisory and legal advice from Edinburgh-headquartered Lindsays.
Ownership Associates Director Carole Leslie said: “It’s fantastic to see a growing business such as Wetrooms International realise the positive impact of employee ownership, not least allowing the team who have helped deliver its success so far to retain control of its future and share the benefits.”
Employee ownership unlocks a capital gains tax exemption for shareholders who sell their shares to an EOT and the ability to reward employees annually with qualifying bonuses of up to £3,600 per year per employee, which can be paid free of income tax.
Nicholas Howie, a Partner in the Corporate Law team at Lindsays, said: “Brian and Bill’s decision to transition to an EOT allows them to continue to play a key role in the future of the business while putting a legal and financial framework in place that creates a long-term legacy for their team. It’s the ideal fit for them.”
Trustees for the new structure have been appointed from the Celing2Floors team and wider Wetrooms International Group nationally.