Cumbernauld-based pastry supplier William Sword has transitioned to an Employee Ownership Trust (EOT) model.
Having been run by four generations of the Sword family since it was founded in 1894, the company is now giving each of its 85-strong workforce a stake in its future.
Brothers Douglas and David Sword, who have each been in the company for more than 40 years, will be stepping back to consultancy roles as part of the change. They will be succeeded as managing director and finance controller respectively by Alexander Gordon and Caitlin Stevenson.
“While we feel that this is the right time for us to step back, the idea of a trade sale – which might ultimately have led to distant owners and jobs being put at risk – didn’t interest us,” commented Douglas Sword. “We have a great team, many of whom have been with us for a long time,” he added. “We wanted to give something back to the people who have worked so hard for us. Transitioning to an EOT allows us to do exactly that.”
Sword noted that the continuity of supply of products also benefits its customers, which include butchers throughout Scotland as well as other pie makers, food manufacturers, and independent retailers across the UK. Its range features traditional sweet and savoury pastry, pies and pastries, chilled and frozen pastry products, and chilled soups – the latter is under The Scottish Soup Company brand, which it launched over 10 years ago.
William Sword received legal advice on its transition to employee ownership from Scottish law firm Lindsays.
Nicholas Howie, a partner in the Corporate team at Lindsays, said the move from the Cumbernauld supplier was a prime example of how the EOT model can be used to recognise and reward expertise and experience of employees. “Recognition is growing regarding the success of employee ownership as a means of succession in businesses, with benefits for all parties. I am sure that William Sword will continue to go from strength to strength,” he added.
Other companies in the UK baking sector that have successfully transitioned to an EOT in recent years include southwest regional chain Parsons Bakery, Lanarkshire-based ingredients supplier R&W Scott, Cornwall-based manufacturer Prima Bakeries Group, Cheshire-based equipment suppler Chandley Ovens, and Essex-based sandwich maker Raynor Foods.
No comments yet