Helping Parsons Bakery become one of the largest employee-owned businesses in the South West
Helping Parsons Bakery become one of the largest employee-owned businesses in the South West
Parsons Bakery, a familiar name on high streets across Bristol and the South West, has become an Employee Ownership Trust (EOT) meaning it will effectively be owned by its 400-plus workers.
A family run business, Parsons Bakery was founded in 1926 in Clevedon and now has almost 50 shops across Bristol, Bath, Somerset, Gloucestershire, Wiltshire, Oxfordshire, Worcestershire, Berkshire and in Wales.
Wards Solicitors’ highly experienced corporate lawyer, Partner Marina MacLennan, acted on behalf of director and shareholder Jerry Parsons – who dedicated 43 years to working in the bakery – to sell to the EOT after the family decided to step back from the day to day management of the business.
Jerry’s wife, Lesley, then wrote to Marina to express her appreciation: “We both wanted to thank you for all your help getting us to this point today. We really appreciate all you have done and for being so patient with us.”
What is the role of the Employee Ownership Trust at Parsons Bakery?
The move creates a trust which will hold 100% of the company’s shares and act as a legal entity overseeing the business on behalf of its employees.
Similar in structure to the trusts established by the John Lewis Partnership and more recently, Bristol’s Aardman Animations, non-allocated profits will be distributed back to Parsons Bakery staff, ensuring the much-loved business remains independent and part of the community.
Director Nick Parsons said: “For generations, our family has been at the heart of the business, but we’ve always known that our employees are what truly make it thrive.”
Added retail director, Lee-Insull-Griffith: “The trust will make sure that everything we do is in the interest of the employees and ultimately, the results we achieve as a business are shared amongst those employees.”
Why are Employee Ownership Trusts becoming more popular?
Since EOTs were introduced under the Finance Act 2014, the sector has grown by more than 90% largely due to the financial advantages they offer compared to traditional sales methods.
According to the Employee Ownership Association, by June last year (2024) there were 1,650 EOTs in the UK, representing a 37% increase on the previous year with small and medium sized enterprises fuelling much of that growth.
Introduced by the government with the aim of promoting employee ownership, they offer several highly beneficial tax reliefs, including:
- Giving business owners the opportunity to sell their shares to an EOT without having to pay Capital Gains Tax.
- Enabling a company owned by an EOT to pay each employee an annual bonus of up to £3,600 free from income tax (the Employee Ownership Association has called for this to be increased to £4,400 per annum).
- Providing relief from Inheritance Tax on certain transfers into and from an EOT.
An EOT can be set up by a company’s existing owners, perhaps as part of their exit or succession planning strategy, or by founders starting a new business which they wish to be employee-owned.
Get in touch
If your business is interested in establishing an EOT, Marina MacLennan can help.
An experienced corporate lawyer, she assists individuals, partnerships and companies, particularly Small and Medium-sized Enterprises (SMEs), with all aspects of corporate and commercial law.
Wards Solicitors wins high praise in the 2025 edition of the independent Legal 500 guide of outstanding legal professionals for its exceptional professional service standards and high levels of technical expertise.
It has also recently been named as Regional Law Firm of the Year by Bristol Law Society.
- Email Marina: marina.maclennan@wards.uk.com