Classic Motor Cars (CMC) has launched an employee ownership trust.
Peter Neumark, chairman of the Shropshire-based car restoration organisation, transferred his majority shareholding into a new entity, the Classic Motor Cars Employee Shareholder Trust, on 26 August 2016, passing control for the business to a trust set up for its 60 employees.
The organisation looked to an employee ownership trust to ensure continued smooth running and success of the business once its senior leaders retire, adopting a model similar to the John Lewis Partnership.
The day-to-day running of CMC will be controlled by an operational board, which will report to a board of trustees chaired by Neumark and comprising outside professionals, as well as an employee trustee elected by staff.
Neumark, who has owned the organisation since 1993, said: “I am nearer 70 than 60 and Nick Goldthorp, who founded this great business with me, is now approaching retirement age, so we felt we had a duty to oversee a passing of responsibility, and who better than the workforce themselves.
“This sort of structure was deemed to be the best home for the [organisation] to ensure its future, safeguarding the jobs of its highly skilled workforce and providing stability for future growth and prosperity.
“Virtually every example of an [employee ownership trust] business we looked at showed greater profitability, greater productivity, better staff retention and, ultimately, of course happier customers. I am extremely proud of what we have achieved and I look forward to watching the [organisation] continue to set the standards for world-class car restoration.”