The Employee Ownership Update
February 15, 2018
Appvion to Be Sold
ESOP-owned paper company Appvion, under Chapter 11 bankruptcy protection since October, announced on February 8
that it would sell its assets to a group of investors. According to the Post Crescent
, a USA Today newspaper in Wisconsin, an internal letter to Appvion employees noted that the shares in the ESOP would likely not have any value after the asset sale.
The article cites NCEO founder Corey Rosen, who said, "ESOP bankruptcies are actually quite rare. We did a study during the recession and the default on loans from creditors was two per 1,000 per year. ESOP companies go bankrupt much less often than non-ESOP companies. Unfortunately, Appvion is not one of them."
Employee-Owned Oliver's Market Supports Victims of Wine Country Fire
Oliver's Market, an employee-owned company with four grocery stores in California's Sonoma County, offered itself as a conduit for raising donations to support people affected by the wildfires in California's wine country. Including its own donations, events it sponsored, and contributions by shoppers, Oliver's raised over $600,000 for charitable organizations.
Welcome to the NCEO's New Directors
The NCEO is proud to welcome one new member to our board of directors, along with four incumbents who will be returning. Suzanne McDowell, a co-CEO of King Arthur Flour, will be joining the board for the term beginning on April 1, 2018. In addition, Cecil Ursprung, Cecilia Loftus, David Solomon, and Brian Sweeney, all incumbents, will be returning for second terms. The NCEO staff and board also warmly thanks Jeff Buettner of ButcherJoseph, whose term on the board will end. Jeff was an active participant who brought creative thinking and welcome enthusiasm to the board, and we look forward to continuing to collaborate with him.
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