Why I sold my business to my staff
Summary
Softstar Shoes in Oregon sold its business to its 30 employees through an Employee Ownership Trust as the owner prepared for retirement. This approach is becoming more common in the US, helping preserve jobs, motivate staff, and keep businesses local as many baby boomer owners retire.Key Facts
- Softstar Shoes transferred ownership from sole owner Tricia Salcido to its 30 employees in January 2026.
- Salcido plans to stay on as chief financial officer during the transition.
- Employee ownership encourages staff to contribute ideas and share in the company's risks and rewards.
- A 2025 study estimated that up to 600 US firms are sold to employees each year.
- Investment funding for such employee buyouts rose from $500 million in 2024 to $865 million in 2025.
- Research shows employee-owned firms tend to be more productive, pay higher wages, and reduce layoffs.
- Many US small business owners are retiring, with about six million firms expected to change hands by 2035.
- Employee Ownership Trusts allow employees to own the company via a trust that pays former owners over time without upfront costs.
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