Founded in 1972 as a left-wing weekly paper, and carrying the slogan “An Tir, an Canan ‘sna Daoine – The Land, the Language, the People”, the newspaper has become one of the most iconic in the UK, championing causes such as the Gaelic language and campaigning on major environmental issues and land reform.
At a time of turmoil in the newspaper industry, the Free Press is again blazing new ground by deciding to move into employee ownership with the support of The Baxi Partnership, a leading employee ownership investment vehicle.
With the traditional bank route closed, Baxi, which controls a £20 million fund, has been able to bring together a funding package that will see 10 employees purchase the title from the paper’s five founders, who include former Labour MP and British government minister Brian Wilson.
Since this initial introduction Baxi has helped the WHFP set up an employee benefits trust that will hold the shares for the employees and ensure the paper remains independent and rooted within its local community.
In addition to its funding expertise, Baxi just as crucially spent time coaching the staff taking up the employee ownership opportunity and helping them prepare for their new role as owners.
Paul Wood, Managing Director of the West Highland Publishing Company Limited, said: “This will be the paper’s first change of ownership and despite what is happening in the wider industry we are optimistic about the future.
“The Free Press has always been a breeding ground for talent and employee ownership will not only help us retain that talent but make even better use of it.
“Our readership is loyal and discerning and we think we can build on this base and further develop the business through the greater participation that employees will have in the way the business is run. Through our staff we are already identifying opportunities for developing content, utilising new-media and developing a news agency side to the business.
“Having our futures in our own hands would not have been possible without the assistance of Baxi. Traditional routes of finance, such as the bank, were not open to us, so over 13 months Baxi brought together the financial and support institutions to back us and then worked with the staff to give them the confidence to face the challenges and opportunities that running your own business brings.
“As a business succession solution employee ownership offered everything the five founders wanted for the future of the paper.”
John Alexander, Managing Director of the Baxi Partnership, said: “The decision of the West Highland Free Press to make this transition highlights that employee ownership is a viable model for companies of all sizes.
“The key features of any deal are getting the right funding package and also ensuring the employees understand their new responsibilities – they are the company’s biggest asset and at a time when quality content is the key to a successful newspaper it is vital that the Free Press unlocks the potential that comes from allowing employees greater participation.
“We are pleased to have helped them solve the problem of ownership succession. If the founders had sold the business on the open market local jobs could have been lost and the whole dynamic of the paper changed. Ensuring local communities maintain their businesses and sources of employment is vital and it is something we are helping a further 26 companies to achieve across the UK.”
Brian Wilson, founding editor of the West Highland Free Press, believes employee ownership is the right move for the paper and now is the right time.
He said: “We wanted the paper to remain independent while offering a great opportunity to the employees who have served it loyally. I am sure that the Free Press will continue to flourish on the basis of quality journalism, service to the community and sound commercial management".
Earlier this year the UK Employee Ownership Index (EOI) revealed that employee owned companies outperformed the FTSE All-Share in the second quarter of 2009 by 19.9%.
