On Thu, 07 Apr 2011 10:47:21 -0400, Landon > wrote:

>In a previous thread, I was asked about the sale of "King Arthur
>Flour" company.
>
>I asked my niece who worked there before, during and after the sale of
>the company to the employees, about what had happened and when.
>
>Here is her reply, verbatim:
>
>"It's a sad story, and very close to my heart. I worked there through
>the sale, and for a year afterward, hoping things would turn around,
>and it was awful watching the company deteriorate.
>
>Things began changing in 1996, when Frank Sands was ready to retire,
>and by 2002, it was literally a different company. The company had
>been in his family for 200 years, but his kids didn’t want to take
>over. So, a certain individual in his upper management convinced him
>to “sell it to the employees” by creating an Employee Stock Ownership
>Plan, (ESOP). He told Frank that he would be able to stay on the
>board and watch over things. Well… that’s not what happened.
>
>The purchase process took a while, but once it was complete, the
>controlling stocks were held by a handful of upper management - all of
>whom were relative "newbies" in the company. The employees didn’t hold
>enough shares to do anything, even as a group. Frank himself was
>voted off the board at the first meeting after the purchase was
>complete. The entire culture changed, from “every shipment of
>products, and every batch of ingredients, is tested, and must meet our
>standards” to “cheaper is better – and if there are issues, we can
>refund those few who complain and still make a profit." This was a
>wonderful company, and I hate that the current management is still
>successfully trading on those years of goodwill without living up to
>the standards set by the Sands."


So goes the world......