The shareholders of Lebus Upholstery and Lebus Furniture, the North Lincolnshire-based manufacturer, have decided to sell 100% of their shares to the company’s employees to secure jobs and protect the company’s long-term future.
An Employee Ownership Trust (EOT) has taken control of both companies with immediate effect.
The move into employee ownership secures 480 jobs on the site in Scunthorpe along with hundreds of other jobs in the supply chain. They are also currently recruiting.
The directors and management will remain in place to continue the success of the company that was established in 1840.
A spokesperson for the directors said: “Private equity was not something we wanted to consider and a trade sale, while attractive to shareholders, would not have guaranteed the security and continued employment of many of our colleagues who have made such great contributions to the success of the business in recent years. We also wanted to remain within the Scunthorpe area and continue to be a major employer within the town.
“The EOT gave us the perfect compromise. It ensures the continuity and integrity of the business, while fully engaging a committed workforce in the knowledge that they will all share in the future success of the company. It also reassures our customer base that the business has taken steps to protect both its employees and supply chain for the long term.”
Cllr Rob Waltham, Leader of North Lincolnshire Council, added: “This is great news for the area – safeguarding hundreds of jobs at a major manufacturer and more in the supply chain.
“This provides a real vote of confidence in the hard working and dedicated staff and in the local economy. We will continue to work with Lebus and look forward to them being even more successful in the coming years.”
Lebus is based on a Scunthorpe site of more than 5.5 acres.