#United States #Employee Ownership #B Corp #Softstar Shoes #Philomath

Softstar Shoes: A New Chapter of Employee Ownership

A Proud Transition

Softstar Shoes, a well-respected footwear manufacturer located in Philomath, Oregon, is making headlines with an exciting development: the company has officially transitioned to a 100% employee-owned model. This strategic move has not only marked a significant milestone in the company’s 40-year history but also showcases their commitment to the local community and sustainable practices.

For those unaware, Softstar Shoes is celebrated for its colorful and comfortable minimal leather shoes, crafted with care by a dedicated team of thirty employees. Each handmade product reflects the company's mission to promote a healthier world through sustainable, quality footwear.

The Employee-Owned Trust Model

The transition to complete employee ownership has been realized through a model known as the Employee-Owned Trust (EOT). While widely accepted in the United Kingdom, this model is gaining traction in the United States, and for good reason. The EOT structure allows Softstar to define a long-term business purpose that ensures the company’s core values are preserved for future generations. In Softstar's case, this means upholding their commitment to sustainable and high-quality products that benefit both employees and the community.

Financial Performance and Employee Engagement

One of the standout benefits of employee ownership is its positive impact on financial performance. Studies have shown that businesses managed under employee ownership models often outperform traditional ownership structures, primarily because employees have a vested interest in the success of the company. At Softstar, every employee will have the opportunity to engage actively through the peer-elected Trust Stewardship Committee, gaining valuable skills in business governance and enhancing their understanding of the company's operations.

The EOT model guarantees that Softstar will remain independent; profits generated will be reinvested into employee compensation and the future growth of the company. Such assurances foster a deeper commitment from employees, encouraging them to build a workplace where their voices matter. This approach not only sustains local employment but also facilitates wealth-building for all employee owners.

A Legacy of Care and Creativity

Former owners Sal and Tricia Salcido, who have led the company for over two decades, have built a rich culture of creativity and inclusivity. The workshop, which has nurtured camaraderie and familial bonds, reflects a legacy that the Salcidos are keen to preserve. Realizing the potential heartbreak of selling a business and seeing it change dramatically, they proactively sought solutions that aligned with their values.

Working with Project Equity, a consulting group specializing in employee ownership, the Salcidos explored different exit strategies. Ultimately, they decided the employee ownership model would allow them to retain their mission and community ties, ensuring the company continues to be a force for good.

Commitment to the Future

Softstar is not just another company; it is a certified B Corporation dedicated to ethical practices and sustainability. Their handcrafting of minimal leather footwear in the USA since 1985 highlights their commitment to local craftsmanship. With this new era of employee ownership, Softstar Shoes is poised to deepen its impact in both the fashion industry and the community it cherishes.

With a renewed focus on employee engagement and sustainable practices, Softstar Shoes is embarking on a journey that promises to secure its future while honoring its past. The change signifies not just a business transition; it symbolizes a movement towards a more equitable system that prioritizes the interests of employees and the local community alike. As employees step into their new roles as owners, the spirit of Softstar will undoubtedly continue to thrive, inspiring generations to come.