A Jewish businessman has attracted plaudits for handing over control of his electronics retail chain to his staff.

Yorkshire-based entrepreneur Julian Richer announced on Tuesday that 60 per cent of the shares of Richer Sounds would be transferred into a trust.

The firm will pay Mr Richer an initial £9.2 million for the stake, but he will give £3.5 million back to the chain’s 531 employees, who will receive £1,000 for every year they have worked for Richer Sounds, the Guardian reports.

He said: “My father dropped down dead at 60 so I am very keen for this to happen in my lifetime. I felt the time was right, rather than leaving it until I’m not around, to ensure the transition goes smoothly and I can be part of it.

“I still really, really care but it is time for the next generation.

“I feel an incredible loyalty to my hard-working colleagues and they should receive any benefit from running the business once my time is up as opposed to just selling to the highest bidder.

“They know the business, and especially our rather unusual culture, extremely well, and the business is therefore far more likely to flourish under their own steam because of this.”

The average payout employees will receive is approximately £8,000 – but there are a reported 39 staff members with more than 20 years’ service.

The Employee Ownership Association said more than 350 UK businesses have now adopted the employee ownership model, with 50 more expected to follow suit.

Richer Sounds is one of the largest British firms to do so in recent years.

Mr Richer, a former pupil of Bristol’s Clifton College, founded the company in 1978 at the age of 19.

Richer Sounds is known for refusing zero-hours contracts, and has a pay gap that favours women.