Southwest regional chain Parsons Bakery is moving to an Employee Ownership Trust (EOT), ensuring its over 400 staff members share stakes in the independent business.
The move comes as the family-run firm approaches its 99th anniversary. Having started as a small bakery in Clevedon in 1926, it quickly added a second site in Nailsea before steadily growing over the years to reach its current retail estate of 48 ‘neighbourhood’ bakery shops spanning Bristol, Somerset, Berkshire, Oxfordshire, Wiltshire, Gloucestershire, Worcestershire, and south Wales. Branding is influenced by renowned Bristol street artist Inkie, whose work can be seen on its Bedminster and Gloucester Road locations.
Parsons’ range comprises handmade sweet treats and savoury bakes alongside various breads including authentic sourdough. These are handcrafted at its central bakery in Bristol by a team of 45 workers, with its head office also housed there.
Fourth-generation family member Nick Parsons had run the company with his wife Nicola since 2000 as majority shareholders but stepped back from managing daily operations a few years ago. However, they have continued to support the team and new management through a carefully phased transition. Ben Paxton, who has been with Parsons for almost eight years, has assumed the role of managing director while Lee Insull-Griffiths is retail director – both now oversee the operation, business development, and innovation, and form part of the wider board of directors.
With guidance from employee ownership experts Postlethwaite Solicitors, 100% of the company shares are being passed to an EOT this month which shall be the legal entity overseeing the business on behalf of its employees.
Non-allocated profits will be distributed back to staff based on sales-to-hours ratios, allowing for tax-free bonuses. This helps ensure that those who contribute to the bakery’s success directly benefit from it, noted the firm. Employees will also have a say in the company’s future direction, with trustees appointed to represent their interests.
“This isn’t just about ownership – it’s about securing the future of Parsons Bakery for the people who make it special,” commented Parsons. “For generations, our family has been at the heart of this business, but we’ve always known that our employees are what truly make it thrive. Now, as we take a step back, we do so knowing Parsons is in the best possible hands – those of the people who bake, serve and keep it running every day,” he added.
Most recent full-year accounts for Parsons filed to Companies House reported that 2024 had been a “year of challenging trading conditions” with turnover dipping marginally to £14.7m while its EBITDA margin fell from 5.7% in 2023 to 3.7%. The directors said they remain confident about the company’s future prospects, “notwithstanding issues it faces as a result of the continued financial impact of rising supplier and energy prices”.
Several other bakery businesses have embraced the employee-ownership model as part of their succession plans in recent years including Lanarkshire-based ingredients supplier R&W Scott, Cornish pasty specialist Prima Bakeries Group in Cornwall, and food-to-go sandwich maker Raynor Foods in Chelmsford.
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