Loch Fyne Oysters
Loch Fyne Oysters has been employee owned since 2003, when Baxi Partnership, the employee buyout specialist, and Royal Bank of Scotland funded a £3.9 million employee buyout.
Established in 1978 at Cairndow at the head of Loch Fyne on the West Coast of Scotland, Loch Fyne Oysters is an internationally renowned producer and retailer of sustainably produced oysters, mussels, smoked products and seafood. The business includes a successful oyster bar and shop, a smokehouse, a mail order and trade sales service and Scotland's largest oyster farm and mussel farm.
The business was put up for sale following the death of co-founder Johnny Noble in 2002. Instead of selling to a rival, a trust representing all 100-plus staff and financed by Royal Bank of Scotland and Baxi Partnership, made a successful bid.
Co-founder Andy Lane explained:
"We want the company to end up in the hands of the employees. But they can’t afford to buy it – it might cost as much as £40,000 per person. So the company finances it. You – Loch Fyne Oysters – set up a trust for your employees. Then that trust borrows enough money to buy all the shares. In this way the trust comes to own the company, on behalf of all the employees. Simplicity itself."
The employee buyout ensured the business and employment remained in the local community. Acquisition by an external buyer could have resulted in job losses. Employee consultation and participation has allowed Loch Fyne Oysters to maximise efficiency. One idea from employees, for example, was to compact and recycle polystyrene, which has cut the company's landfill costs.
Staff turnover has also fallen. Virginia Sumsion, Marketing Manager and Employee Benefit Trust Trustee, explained: "Because people are getting more information, they can see the way the company is progressing and are keener to stay."
The company supports its community through the Loch Fyne Trust, set up in 2000 to relieve poverty, advance education and protection the environment, particularly within Scotland and the area around the head of Loch Fyne.
Visit the Loch Fyne Oysters website for more information.
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