Scottish textile manufacturer, Turnberry Rug Works, is becoming an employee-owned business. Established in 1991, the company specialises in producing handcrafted bespoke rugs wall hangings from a converted granary in Turnberry on the west coast of Scotland.
The news comes as the company, alongside five other Scottish textiles businesses supported by Scottish Enterprise, displays its latest product offerings at Decorex, which is currently taking place at Kensington Palace, London.
Turnberry Rug Works has eight employees and currently has an annual turnover of £450,000. Most of the team has been with the company for over 20 years. Two years ago, employee ownership was identified as the best way to secure the long-term stability of the manufacturer and preserve the skills that are the lifeblood of the firm.
Scottish Enterprise has worked intensively with Turnberry Rug Works through its account management approach to help accelerate the company’s growth ambitions. Co-operative Development Scotland (CDS), Scottish Enterprise’s employee ownership support arm, guided and supported the company’s transition to employee ownership by providing advice on the implementation of the new ownership structure.
Throughout the transition to employee ownership, transition consultant Alistair Gibb provided specialist project management, including legal, financial and employee engagement advice.
The transaction involves the creation of an Employee Benefit Trust (EBT), which will initially acquire 49% of the shares. The full balance will be purchased by the EBT out of the company profits over the next five years.
John McKerchar, managing director at Turnberry Rug Works, says: “I am delighted the company is being acquired by the employees, securing its future in Scotland. What we offer is a unique and proud handmade product that cannot simply be mass produced.
“Most of our team has been with us for two decades. Employee ownership not only rewards their loyalty but gives them a real stake in the business. As a craft business, our prosperity is dependent on the skills and wellbeing of our staff and our ability to pass these skills onto a new generation.
“International growth is a key priority for us, and we’re grateful to Scottish Enterprise for helping us exhibit at Decorex – a visit we hope will result in many new lucrative projects.”
Sarah Deas, chief executive at CDS, adds: “This is a good move for Turnberry Rug Works and helps safeguard traditional manufacturing skills. The deal keeps it grounded in its community and shows how employee ownership can sustain businesses and help them grow.
“This is also good news for Scotland’s textiles sector, which contributes £350m to Scotland’s economy each year through exports. Supporting Scottish companies to enter new markets with growth opportunities, both at home and overseas, is a priority for us and we wish all of the Scottish companies every success at Decorex this year.”
