The owners of Pembrokeshire’s long-running wool blanket family business, Melin Tregwynt, have transferred the running of the business to their staff. Eifion and Amanda Griffiths have handed over the reins to their 42 employees via an employee-owned trust.
The couple said the workers were the right people to carry on the business while giving them all a stake in its future. Mr and Mrs Griffiths, who have run the mill and shop for 35 years, will remain on a part-time basis but plan to reduce their time at the business as ownership is transferred to the trust.
The employee-owned trust will manage the mill, which has been in the Griffiths family since 1912 when it was set up by Mr Griffiths’ grandfather. Staff will be free to make decisions as the founders are paid a staggered amount as they step back from the business.
Mr Griffiths said: “Amanda and I inherited the business and have grown it substantially over the last 35 years but now we want to take a step back. It was important for us that Melin Tregwynt remained a viable business and part of its local community, and employee ownership provided the perfect solution for us."
He added: “We will guide the new management board through the transition, but most importantly the 42 strong workforce will keep their jobs, and skills and knowledge will remain here and be kept alive. Many employees have worked here for decades, and we even had three generations of one family as part of our team. I am proud to be passing on the company to the new employee board who I know will take the business to new levels of growth.”
Melin Tregwynt, in the hamlet of Tregwynt, is the latest Welsh business to move to an employee-owned model. The transition was supported by the Social Business Wales programme which is delivered by the Wales Co-operative Centre. Law firm Geldards advised on the deal.
The move side steps selling to an outside firm and means there is no cost or liability for individual workers, just incentive to ensure the business thrives.
Derek Walker, chief executive of the Wales Co-operartive Centre, said: “It is wonderful to see an Employee Ownership Trust being used in this way, to safeguard not only jobs, but also the heritage.
“As Eifion said, this is the perfect way to pass a business on to people who already have a vested interest in it. Employee-owned companies are innovative, motivated and adaptable – and to see a 110-year-old business take this brave next step shows how important employee ownership is.”
Mr Walker added: “In fact, not many people realise that being employee owned is one of the fast growing and modern business models in the UK. Some of the UK’s most successful companies are employee owned, such as John Lewis, Unipart and here in Wales, Tregroes Waffles and Cwmni Da amongst others.
“It is a great way to pass thriving companies onto the next generation and is why we want to encourage more soon-to-be retiring founders and employees to consider it as an option.”
Over the years, Melin Tregwynt has become an iconic business producing Welsh woollen blankets, bedspreads, and fabrics. Alongside its own stock ranges, the company specialises in short runs and exclusive designs for hotels, designers and major brands.
Louise Clarke, retail manager and now a member of the trust at Melin Tregwynt, said: “Melin Tregwynt has such a strong base here in West Wales it would have been a tragedy to see it bought out by another company and possibly changed forever, so we are honoured that the Griffiths family has chosen to trust us as employees with their family business.”
Last June, the Welsh Government committed to doubling the number of employee-owned businesses in Wales over the next Senedd term. Since then, the employee ownership team for Social Business Wales said they have seen a big surge in Welsh businesses coming forward looking to make the move.
