Employees have taken ownership of Jerry’s Home Improvement Center in Eugene through a federal Employee Stock Ownership Program.
Some 400 employees have taken ownership of Jerry’s Home Improvement Center in Eugene through a federal Employee Stock Ownership Program.
ESOPs are fading out nationally as access to credit to sell companies to employees becomes harder to find.
The conversion of the 50-year-old, privately held company to an employee-owned company was effective Dec. 29, said Dennis Orem, who will remain the chief executive officer and answer to the same board of directors. But the transfer was not made public until Thursday.
The sale to employees is great for cash flow because Jerry’s, which was taxed at 43 percent, is now a nontaxed entity because a trust, operated for the benefit of employees, will hold the company stock until it’s distributed to employees.
Read more about the Lane County business at The Register-Guard.
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