Rega Becomes Employee-Owned
Posted by The Sound Organisation on Nov 18th 2024
Rega made a momentous announcement this month that will shape the high-end company's future in the audio world. Roy Gandy, co-founder and director of Rega Research gifted 100% of his ownership shares in the company to an Employee Ownership Trust, thereby converting the privately-owned company to an employee-owned one.
Here's Rega's announcement:
Text:
51 years of rowing our own boat.
An important change for Rega Research ltd.
Rega is recognised globally for producing high performance, affordable, two channel hi-fi, which lasts a lifetime. We never bow to industry pressure and actively work on being different from other companies. Focusing on this niche marketplace is the cornerstone of our company culture.
The 28th of October 2024 was a significant day in our history that will ensure Rega continues long into the future and our strategy will remain unchanged.
On this day, Roy Gandy gifted 100% of his shares (full ownership) of the company to a Trust toprotect Rega long into the future. This incredible gesture, of which Roy Gandy receives zero financial gain, has allowed Rega to become an Employee Ownership Trust (EOT). Becoming an EOT has many advantages, however, the main reason is to protect our culture and decades of hard work. Becoming an EOT prevents the company being sold and potential buyouts (by the dreaded investors) whilst providing all staff with job security going forward.
How does it work and what will change? Nothing will change on a day-to-day basis; the Trust now owns Rega on behalf of all employees. The Trust does not take over the running of the company, although it will be involved in key decisions. All Rega employees become beneficiaries (this is called Indirect Ownership). Roy Gandy remains the sole Director and will continue to work in R&D and sales, the two areas he enjoys the most.
This level of employee empowerment will help maintain and further grow an already successful company and give continuity to our strong company values.
Simply put, these big changes ensure nothing will change and we can continue designing and manufacturing world beating, affordable hi-fi products by hand, here in the UK, safe in the knowledge Rega is protected for years to come.
This is good news for Rega, but should be welcome news to our fantastic dealers, distributors, suppliers and loyal customers across the world.
What the Audio Industry is saying:
- Rega's Announcement
- Alpha-Audio: "The decision to make Rega employee-owned aims to preserve the company’s core values well into the future. To achieve this, Rega used a specific UK business model called an EOT, or Employee Ownership Trust. The company further clarified that Gandy is not profiting financially from this step. A key benefit of an EOT structure is that it cannot be sold, even to potentially unscrupulous investors."
- What Hi-Fi: "Rega has been on superb form in recent years, with five-star reviews and What Hi-Fi? Award wins aplenty for its excellent turntables, stereo amplifiers and phono stages. The brand prides itself in doing things its own way, stating: 'We never bow to industry pressure and actively work on being different from other companies.' "
- TrackingAngle: "Not retiring but magnanimous gesture assures smooth succession and also prevents V.C. vulture buyout... Given the hollowed out, sad states of some other veteran companies have become under venture capital ownership—and I could name names but won't here—let's hope this becomes a succession model."
- StereoIndex: "Rega Research has transitioned to an employee-owned structure. Established by Roy Gandy in 1973, this esteemed hi-fi brand is well-known for its turntables, tonearms, and cartridges. In addition to these products, the company offers a variety of other audio equipment, including phono preamplifiers, CD players, amplifiers, and speaker systems, all produced in the UK."
- Business Sale Report: "Rega Research said it is proud to remain a dedicated British manufacturer, employing over 140 people and selling to 46 different countries. It designs and assembles every product by hand in its custom-built 38,000 square foot facility."