Shropshire car restoration firm handed over to its workers
A car restoration business in Shropshire has been handed over in its entirety to its staff in an industry-first move.
The ownership of Classic Motor Cars, based just outside Bridgnorth, has been handed to the company's 60-plus staff members in a model similar to the ownership structure of John Lewis and Waitrose.
The company's co-founder Peter Neumark, is to become chairman of the trust which is responsible for the business.
He said he hopes the new employee ownership trust will encourage staff to grow and develop the £5.2 million-turnover business.
"We looked at the options including a sales and thought would a new owner treat it correctly," he said. "I don't think they would.
"I then learned about employee ownership trusts, the best example of which is John Lewis. Every one I looked at, their profitability, their productivity, their employee retention, their customer satisfaction all increased. There didn't seem to be any negatives.
"We never even put a value on the business, as a sale wasn't a route we were going to go down."
Mr Neumark, who was founded parcels company Target Express before leaving as part of a takeover deal in 2000, has handed the chairmanship of the company to David Barzilay.
Tim Leese has become the new managing director, and is part of an operating board which will report to the trustees.
Mr Neumark described the company as a "hobby business" which had become increasingly efficient since the plan to change ownership was first formed 18 months ago.
But Mr Barzilay, who first entered the business to provide PR services, said: "I think he is demeaning himself in a way. It was always a well-run, successful, profitable business.
"It's a very solid foundation, I can only see it growing in strength and ability."
CMC is currently working on more than 20 classic car restorations, including marques such as Aston Martin, Jaguar and Lancia.
Almost all work is onsite, with only re-chroming taking place outside the business. It has six apprentices as it develops the skills in the workforce.
As with John Lewis, the employee-owners will sometimes receive a dividend from CMC's profits, although that may also be used to reinvest in developing the business.
Panel beater Luke Martin is the employees' representative on the trust board, and said: "We are all pretty excited. Having effectively got our own business to run, and to improve, we all have lots of good ideas we can bring forward.
"Everybody is treating it like their own little business, and everybody is encouraged to come forward if they have a problem or an idea."
Around 300 businesses around the country are owned by similar trusts, but CMC is the first in the classic car restoration sector.
