18 November 2022 – Gifts and gadgets retailer, Gift Universe has transitioned to an employee owned business, putting its future success in the hands of its dedicated employees.
This decision was based on careful consideration of several factors as the founder, Paul Kraftman, approaches retirement in the next few years. The business is now majority owned by an Employee Ownership Trust whereby the company is operated for the benefit of the staff. This is a smart way of preserving the heart and soul of the company as it avoids the inevitable rationalisation associated with mergers and acquisitions by a trade buyer, or the disruption of private equity short term goals.
Research also shows that employee owned businesses are better equipped than other companies when it comes to surviving economic shake-ups, which is particularly relevant at this time. Given Gift Universe’s proven resilience post 2008 as well as the COVID-19 pandemic, the business already possesses the agility necessary to make employee ownership an outright success.
This decision will in due course put the profits of the business into the hands of the people who work to create them. Recent trends show that this is highly effective in improving productivity, motivation, and creative thinking in employees. It is also known to aid retention of talent. This is certainly evidenced by the success of brands such as John Lewis and Aardman of Wallace and Gromit fame, who have taken on this business model.
Trident Trust will be providing two independent directors to sit on the Employee Trust board; James Ramsden, from Trident commented:
“Trident Trust, itself an EOT owned business, is one of the leading providers of EOT trustee services, supporting a diverse range of more than 30 EOT owned businesses. We look forward to supporting the Gift Universe team as they move into EOT ownership.”
Of the decision to embrace employee ownership, Paul Kraftman said, “At Gift Universe we are proud of our great people, many of whom have been with the company for a number of years and have been emotionally invested in our journey. I am delighted that they will now have the opportunity to own a part of the business they have helped build and we will be able to manage succession planning in the business in an orderly way over the next few years, ensuring continuity.
I would also like to thank Helen Phillips, our Corporate Relationship Director at HSBC, for her incredible support throughout this process.”
Notes to editors
For further press information, please contact:
Nina Steyn
About Gift Universe
Gift Universe is an end-to-end multi-channel business sourcing, developing and selling products in the novelty, gifting and gadgets market. Founded in 2002, the company has established itself as a leader in its industry through its expansive network of Menkind stores across the UK. Under the direction of Founder and Chief Executive Paul Kraftman, Gift Universe has grown organically as well as via several successful mergers and acquisitions since its inception.
With an in-house product development team, Gift Universe is able to offer a diverse product range spanning numerous gifting categories, with 70% of revenue generated from original products they have designed in-house. Channels include 50 permanent stores (expanding up to 70 at peak trading through seasonal pop-ups), B2B distribution to blue-chip and independent retailers, ecommerce and marketplaces. Furthermore, thanks to its longstanding relationship with partners and suppliers, Gift Universe can count on being first to market, as well as offering a number of exclusive products.