Oregon-based Softstar Shoes has transferred ownership of the company to its approximately 30 employees as former owner Tricia Salcido begins planning for retirement. The shoemaker completed the transition through an Employee Ownership Trust in January, allowing workers to share in future profits without buying the business themselves.
Salcido, 56, will remain chief financial officer for several years while the trust pays the agreed purchase price from future company profits. She said employees have become more involved in decisions and are offering ideas for reducing costs and increasing revenue.
Employee Ownership Protects Local Jobs
Salcido chose employee ownership because she wanted to preserve Softstar’s jobs and keep its handcrafted shoe production in Oregon. She believed an outside corporate buyer might reduce costs by moving manufacturing away from the United States.
Under an Employee Ownership Trust, a trust holds the company on behalf of its workforce. Employees do not use their own money to acquire it, while the former owner receives instalments funded by future profits.
The arrangement carries financial risk for Salcido because payments depend on the company remaining successful. Employees also receive a share of annual profits, according to Softstar’s ownership announcement.
William Stockwell used a different structure when transferring Philadelphia manufacturer Stockwell Elastomerics to its employees. Through an Employee Stock Ownership Plan, workers receive shares that they can cash in after leaving the company, while Stockwell receives payments over 10 years.
Millions of US Businesses Face Ownership Changes
About six million US small and medium-sized businesses could face ownership transitions by 2035 as baby boomer founders retire, according to McKinsey. More than one million may be suitable for a sale or employee transfer, representing as much as $5 trillion in business value.
A 2025 study estimated that up to 600 US companies are being sold to employees each year. Investment funds available to finance such deals reportedly rose 78%, from $500 million in 2024 to $865 million in 2025.
Employee Stock Ownership Plans remain the most common model. In 2023, 6,609 companies used the structure, covering 10.9 million workers and holding more than $2 trillion in combined assets.
Worker cooperatives offer another option by allowing employees to purchase membership shares and participate in company decisions. Employee ownership schemes can preserve jobs, but they may require years of planning and are often more complex than conventional business sales.
US Government Promotes Employee Ownership
The US Department of Labor operates an Employee Ownership Initiative that provides education and technical support for companies considering worker ownership. The program covers Employee Ownership Trusts, Employee Stock Ownership Plans, and worker cooperatives.
SilkoTek Corporation founder Paul Silvis, 71, is also transferring his Pennsylvania manufacturing company to employees. Stockwell advised owners to begin the process years before retirement because planning, financing, and establishing a trust can take considerable time.
Featured image credits: Magnific.com
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