DATE RELEASED: 09/15/19

Hell's Kitchen, the cheekily named restaurant in downtown Minneapolis that's known for its house-made peanut butter, lemon ricotta pancakes and crazy huge bloody Mary bar, is turning over ownership of its operations to employees.

Instead of selling the 17-year-old restaurant to outsiders, owners Cynthia Gerdes and Steve Meyer (co-founder and Gerdes' husband, Mitch Omer, died in 2015) are creating an ESOP (Employee Stock Ownership Plan), which lets employees buy the company with future...

DATE RELEASED: 09/09/19

Former employees held a majority of shares in the agency

One of the benefits of being part of an independent agency—or any agency, for that matter—is the opportunity to become a shareholder. Whether shares are earned, gifted or bought, when growth happens, a piece of ownership means getting part of the windfall.

While Kansas City independent Barkley found the benefit of shares in the company to be a massive plus in recruiting and retaining talent, the agency...

DATE RELEASED: 09/08/19

Tubing manufacturer NewAge Industries is now 100% owned by its employees through an ESOP (Employee Stock Ownership Plan). The ESOP is a retirement benefit that gives employee-owners a true stake in their futures. Ken Baker, CEO, sold portions of the business to the ESOP in three stages over the past thirteen years. September 2019 saw the completion of a decades-long plan to help ensure the continued success of the company and avoid a competitive...

DATE RELEASED: 09/05/19

HONEOYE FALLS, N.Y., Sept. 5, 2019 /PRNewswire/ -- KJT Group is proud to announce they are now a 100% employee-owned company. This announcement of the sale to the Employee Stock Ownership Plan & Trust (ESOP) was made to KJT Group employees at a special meeting held at the company's headquarters in Honeoye Falls, NY.

An ESOP is an employee benefit plan, facilitated through a trust, which provides company stock to employees as part of their...

DATE RELEASED: 09/03/19

Michigan based Azon USA Inc. has made strategic changes to its board of directors. Effective immediately Tami Lee is appointed to the Azon board of directors. Lee has been with Azon for over 35 years, serving most recently as director of human resources. Lee promotes a healthy, productive workforce culture, oversees the development of employee benefits and was instrumental in the formation of the Azon ESOP (employee stock ownership plan), according to the...

DATE RELEASED: 09/03/19

On August 28, Bloomberg BNA reported "Labor Boosts Political Staff's Power in Benefits Arm Shuffle." The changes announced affect the Employee Benefits Security Administration (EBSA), the unit of the Department of Labor responsible for regulation and enforcement of the Employee Retirement Income Security Act (ERISA), which governs ESOPs and other benefit plans. Under the newly announced organizational structure, units of EBSA that had reported to the deputy...

DATE RELEASED: 09/03/19

Rogers-based architecture and engineering firm Crafton Tull announced Tuesday the company has established an Employee Stock Ownership Plan, or ESOP.

Crafton Tull is now the third company headquartered in Arkansas to be owned 100% by employees through an ESOP, joining Harps Foods in Springdale and Central States Manufacturing in Lowell.

"We realized a number of years ago that we would eventually need a plan to transfer the ownership of the...

DATE RELEASED: 09/02/19

California-based electrical equipment manufacturer ESL Power Systems, Inc. has become a fully 100% employee owned company through an Employee Stock Ownership Plan (ESOP).

ESOP was developed in the US as a mechanism to facilitate the owners of family-owned and privately held businesses to transfer ownership to their employees over time in a tax efficient manner. It was set up to create a market for the shares of a departing owner or a...

DATE RELEASED: 09/01/19

In New Hampshire, more than 5,000 employees have a stake in their companies through ESOPs

Tossing cornhole, munching barbecued chicken and lining up at a free ice cream truck, the employees of Yankee Publishing Inc. were celebrating something new on a muggy Aug. 22 afternoon in Dublin: becoming owners of the company they work for.

While ownership of Yankee Publishing may have been a new concept to them, it's not to others in New Hampshire.

The 17 family owners of the 84-...

DATE RELEASED: 08/28/19

As we hover over historically low unemployment, more employees are scouring job sites, searching for the answer to their discontentment. A study by Work Institute found that one in four workers left their jobs in 2018. Companies are being hit with $600 billion in turnover costs as employees play musical chairs. Exit interviews found that 77 percent of employees could have been saved.

Career employees have become extinct. The days of starting and ending a career with the same company...

DATE RELEASED: 08/26/19

ATLANTA--(BUSINESS WIRE)--The Kendeda Fund today announced it will make more than $24 million in new grants to significantly expand democratic employee ownership across the United States. The investment, which will be completed by 2023, is among the largest in Kendeda's history and is expected to dramatically expand alternative models for wealth building in America and empower thousands of workers who have traditionally lacked economic stability and opportunities to build wealth.

A...

DATE RELEASED: 08/21/19

A federal district court judge found that since shares for the ESOP were purchased with borrowed funds, the subsequent lower valuation of the stock was an immediate equitable benefit to participants.

In a very concise decision, a federal district court judge found a participant in an employee stock ownership plan (ESOP) did not have standing to sue regarding the valuation of stock price for the setup of the ESOP because she did not prove she suffered any harm.

In late 2016,...

DATE RELEASED: 08/20/19

The court found as a fiduciary to the ESOP, Evolve Bank failed to notice, question or investigate several red flags that appeared in the appraisal of the stock that was used to set the share price for a 2010 purchase.

A federal court judge has ordered the former CEO of a Virginia packaging equipment company and the bank that acted as a transactional fiduciary of the company's employee stock ownership plan (ESOP) to restore $6,502,500 to the plan.

An investigation by the U.S....

DATE RELEASED: 08/16/19

Portland, Oregon-based Breakside Brewery closed a deal last week to launch an employee stock ownership plan (ESOP), according to the Portland Business Journal.

Breakside founder Scott Lawrence, who started the craft brewery in 2010, told the outlet that he explored other options but ultimately decided that an ESOP was the best option for the brewery's 160 workers.

"It became more and more evident that I didn't want to sell to another company or private equity just to get me rich...

DATE RELEASED: 08/14/19

OwnersEdge has grown into holding company for five businesses, over 300 employee owners

CITY OF PEWAUKEE — Bolstered by a vision of employee ownership, OwnersEdge Inc. is in growth mode.

The City of Pewaukee-based holding company is headed by Lisa Reardon, who has expanded the business to include others in the field of niche technological solutions and expertise.

All are structured as employee stock ownership plan companies, or ESOP companies. 

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