Case Study: Scott and Fyfe

Resiliently Rooted in Scotland

Scott and Fyfe has been at the forefront of the textiles industry, designing and producing for global markets from its Tayport, Scotland base, for over 160 years.

Originally established as a linen works in 1864 and then focussing on industrial textiles - including manufacturing essential jute fabrics during World War One - Scott & Fyfe has diversified over the years amid a previous dependence on declining products and markets.

Its main value streams are now based around products for the irrigation and pipe repair industries.

Having been run by four successive generations of the same family, it now has employees at its heart, levering its employee ownership (EO) advantage to succeed and evolve during difficult times.

Going EO

The family owners began thinking about succession options around 2010 and opted for employee ownership to keep the business in Tayport where it was secure and supported the existing workforce across the area.

At the time it was looking into EO, team members from employee owned business Gripple – which has a direct ownership model where employees own shares – visited the Scott and Fyfe site and told stories about people being able to pay off their mortgage or retire early.

“I remember at the time thinking ‘gosh, really, is that really possible?” says Managing Director Michelle Quadrelli.

Scott and Fyfe opted for an EBT  that holds at least 51% of shares so employees have the majority shareholding, while direct ownership is achieved through a combination of a share incentive plan (SIP) and an enterprise management incentive scheme (EMI).

After transitioning in 2012, the business described it as a “new era where employees and the Tayport community will reap the benefits.” Its employee ownership centred on “an ethos where we work together as one team, with one vision, to build a stable future for all our stakeholders.” 

EO Approach

Innovation, openness, and employee voice are the key focuses for the business' approach to EO. It’s all about employees being at the heart of the business where everyone grows it together.

In 2012 ahead of the transition to EO, they unveiled a colourful, open and collaborative innovation space that did away with old, closed meeting rooms, custom-designed and developed in conjunction with interior design students from The Glasgow School of Art.

Described by Michelle as “Google meets Teletubbies”, the vibrant space is a physical embodiment of their collective ideas and ambition, with artificial grass throughout, paths lead to individual, brightly coloured team pods; picnic benches; product display areas; a cinema/presentation space; and flexible meeting areas.

Meeting actions are recorded on the whiteboard deferentially referred to as the “wall of shame” as it remains after your meeting as a very visible action list of how they move things forward with the business.

Reflections

Looking to the future, Ms Quadrelli says: “Today's business landscape is driven by rapid innovation, digital transformation, and evolving consumer expectations. While companies gain access to global markets and advanced technologies, they must also navigate economic uncertainty, geopolitical tensions and increasing regulations. 

“Sustainability and ethical practices are becoming key priorities, requiring a balance between profitability and responsibility. At Scott and Fyfe, our heritage, progressive design, and commitment to innovation push the boundaries of textile engineering, ensuring we remain industry leaders for years to come.”

On the subject of EO, Michelle adds: "At the heart of our employee ownership philosophy is the drive to empower employees to strive for excellence and benefit from the rewards of share ownership. 

"Our commitment to strengthening the employee ownership ethos within Scott and Fyfe remains unwavering, and we believe the solid foundation we have built will support our future success.

“Employee ownership is so important for us – because for us as a business everyone needs to have that empowerment, that voice, and feel that the organisation they own is something they’re proud of and something they want to be part of."