Geldards one of the leading advisors on Employee Ownership Trusts has advised Derbyshire-based Rollstore on the transition to an Employee Ownership Trust (EOT).

Rollstore is one of the UK’s largest suppliers of materials handling equipment, supplying products to companies across a diverse range of industry sectors. Based in Heanor the company was established by Alan Reid, Tony Reid and Russ Brown in 1996 to carry out the refurbishment of roll cages, which are used in a variety of industries to transport goods. The business quickly grew to encompass manufacturing and logistics using the latest innovative technology to deliver bespoke materials handling products across Europe and globally.

Having grown and nurtured the business over the past quarter of a century, owners Tony and Russ wanted to find a solution that would enable the legacy and integrity of the business to continue when they stepped away from steering the helm. They decided the move to an Employee Ownership Trust, handing ownership of the business over to employees to be managed by a trust, would be the best solution to safeguard employee jobs, ensure the business could continue to operate from its current site in Heanor, and maintain the integrity and continuity of the firm for the future.

EOTs have proved a popular choice for many businesses facing the same dilemma when planning for succession and their popularity has swelled over the past few years as the preferred option for giving employees a stake in the future growth of the business and protecting a hard-won business legacy. Geldards is a leading authority on Employee Ownership Trusts and the Corporate team at Geldards advised Rollstore on the transition to an Employee Ownership Trust, on the formation of an EOT, the purchase by the EOT of the entire share capital and the process of engaging with the employees on the transaction.

Partner Paul Feenan led the deal advising on all legal aspects of the transaction supported by Tax Partner Andrew Evans.

Commenting on the transaction, Paul Feenan, Partner at Geldards said:

“It’s been a pleasure to work closely with Tony and Russ and we are delighted that Rollstore has transitioned to become employee-owned, giving the employees a stake in the future of the business. It was certainly the right decision for their business and we wish them well for the future.”

Tony Reid,  Founder said:

“We really value our employees at Rollstore, many of whom have been working for the business for a number of years. It was important that we found the right way forward for the future of the business which would offer continuity and assurances for our workforce. Geldards has been brilliant advising us on the EOT process, holding our hand every step of the way and we are delighted they have helped make our plan for the future a reality.”