Parfetts Cash and Carry - Employee Ownership

For almost 30 years Parfetts has been a successful, independent family business with a reputation for delivering excellent quality of service to customers and creating a workplace where employees are respected and valued. It is the Parfett family's wish that this should continue for many years.

In 2007, the Board conducted a thorough investigation into employee ownership as a means for the company to continue as an independent business after the retirement at some future date of Steve and Robert. Other options were considered, including selling out to a competitor at an appropriate time in the future. This would allowed the family to leave the business, but would inevitably have left employees working in a very different organisation and vulnerable to any cuts or changes that a new owner might make. Therefore, the over-riding consideration was that the longer term interests and security of employees was taken into account. The family and board also wanted the company to remain a successful business where customers receive excellent levels of service and employees are treated with respect and rewarded for their contribution. The Board recognises that the employees have made Parfetts the success it is today, and it will be the employees who ensure the Company remains successful in the future.

By keeping the ownership within the company, the board's intention is to ensure that the business remains in existence for the long term and continues to grow. By passing ownership to the employees, the company remains independent and the employees will benefit from the future success of the company.

Therefore, in March 2008 the Parfett family sold just over half their shareholding to the Parfetts Employee Ownership Trust. This Trust holds the shares on behalf of the employees. This means that employees do not hold any shares directly; the Trust holds the shares on the employees' behalf. This is a very similar model to that used by the UK's largest employee owned company; the John Lewis Partnership. The advantage of this structure is that shares can never be sold, the ownership stays within the company, and the Parfetts employees can benefit from being owners.

It is envisaged that in time, the remaining family shareholding will be sold into the Trust. This enables a sensible and structured transition. Only employees will be beneficiaries of the Trust, which means that Parfetts will not be open to influence from external shareholders.

The board believes that this is the best way to secure the ongoing success of Parfetts. This represents a big change, and may be viewed as quite a radical step from traditional business transfers. However, what is important is that Parfetts continues to be a great place to work, exceeds customers' needs and is a good company to do business with.

Parfetts has always been a strong, successful company. Now that it is part-owned by its employees, Parfetts will continue to go from strength to strength, and all employees can look forward to a successful future.

Employee Ownership

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