Classic Motor Cars launches employee ownership trust

first_imgClassic 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.”last_img read more