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Published September 04, 2012, 10:00 PM

Nearby Grocery Store Chain Transitioning to Employee Ownership

Employees at a nearby grocery store chain are celebrating after a labor day weekend announcement that the store will now be employee-owned. Leuken’s Village Foods will begin the transition to a 100% employee-owned company on January 1st.

By: Lacy Monteleone, KAWE TV

Employees at a nearby grocery store chain are celebrating after a labor day weekend announcement that the store will now be employee-owned. Leuken’s Village Foods will begin the transition to a 100% employee-owned company on January 1st.

Joe Lueken says his employees are what makes his business possible and the announcement that he would make the store employee-owned was a pleasant surprise for many.

Under the change the store will follow what is called an employee stock ownership plan. Basically how it works is the company sets up a trust fund for employees and contribute either cash to buy company stock, contribute shares directly to the plan or have the plan borrow money to buy shares of stock. And while the failings of some employee-owned businesses have left some wary about such plans most studies show that companies that enact such plans do well.

Lueken says he had been consider the plan for a couple of years and in the end it was the right thing to do.

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