In a previous thread, I was asked about the sale of "King Arthur
Flour" company.

I asked my niece who worked there before, during and after the sale of
the company to the employees, about what had happened and when.

Here is her reply, verbatim:

"It's a sad story, and very close to my heart. I worked there through
the sale, and for a year afterward, hoping things would turn around,
and it was awful watching the company deteriorate.

Things began changing in 1996, when Frank Sands was ready to retire,
and by 2002, it was literally a different company. The company had
been in his family for 200 years, but his kids didn’t want to take
over. So, a certain individual in his upper management convinced him
to “sell it to the employees” by creating an Employee Stock Ownership
Plan, (ESOP). He told Frank that he would be able to stay on the
board and watch over things. Well… that’s not what happened.

The purchase process took a while, but once it was complete, the
controlling stocks were held by a handful of upper management - all of
whom were relative "newbies" in the company. The employees didn’t hold
enough shares to do anything, even as a group. Frank himself was
voted off the board at the first meeting after the purchase was
complete. The entire culture changed, from “every shipment of
products, and every batch of ingredients, is tested, and must meet our
standards” to “cheaper is better – and if there are issues, we can
refund those few who complain and still make a profit." This was a
wonderful company, and I hate that the current management is still
successfully trading on those years of goodwill without living up to
the standards set by the Sands."

On Thu, 07 Apr 2011 10:47:21 -0400, Landon > wrote:

>In a previous thread, I was asked about the sale of "King Arthur
>Flour" company.
>
>I asked my niece who worked there before, during and after the sale of
>the company to the employees, about what had happened and when.
>
>Here is her reply, verbatim:
>
>"It's a sad story, and very close to my heart. I worked there through
>the sale, and for a year afterward, hoping things would turn around,
>and it was awful watching the company deteriorate.
>
>Things began changing in 1996, when Frank Sands was ready to retire,
>and by 2002, it was literally a different company. The company had
>been in his family for 200 years, but his kids didn’t want to take
>over. So, a certain individual in his upper management convinced him
>to “sell it to the employees” by creating an Employee Stock Ownership
>Plan, (ESOP). He told Frank that he would be able to stay on the
>board and watch over things. Well… that’s not what happened.
>
>The purchase process took a while, but once it was complete, the
>controlling stocks were held by a handful of upper management - all of
>whom were relative "newbies" in the company. The employees didn’t hold
>enough shares to do anything, even as a group. Frank himself was
>voted off the board at the first meeting after the purchase was
>complete. The entire culture changed, from “every shipment of
>products, and every batch of ingredients, is tested, and must meet our
>standards” to “cheaper is better – and if there are issues, we can
>refund those few who complain and still make a profit." This was a
>wonderful company, and I hate that the current management is still
>successfully trading on those years of goodwill without living up to
>the standards set by the Sands."


So goes the world......

Landon wrote:
> In a previous thread, I was asked about the sale of "King Arthur
> Flour" company.
>
> I asked my niece who worked there before, during and after the sale of
> the company to the employees, about what had happened and when.
>
> Here is her reply, verbatim:
>
> "It's a sad story, and very close to my heart. I worked there through
> the sale, and for a year afterward, hoping things would turn around,
> and it was awful watching the company deteriorate.
>
> Things began changing in 1996, when Frank Sands was ready to retire,
> and by 2002, it was literally a different company. The company had
> been in his family for 200 years, but his kids didn't want to take
> over. So, a certain individual in his upper management convinced him
> to "sell it to the employees" by creating an Employee Stock Ownership
> Plan, (ESOP). He told Frank that he would be able to stay on the
> board and watch over things. Well. that's not what happened.
>
> The purchase process took a while, but once it was complete, the
> controlling stocks were held by a handful of upper management - all of
> whom were relative "newbies" in the company. The employees didn't hold
> enough shares to do anything, even as a group. Frank himself was
> voted off the board at the first meeting after the purchase was
> complete. The entire culture changed, from "every shipment of
> products, and every batch of ingredients, is tested, and must meet our
> standards" to "cheaper is better - and if there are issues, we can
> refund those few who complain and still make a profit." This was a
> wonderful company, and I hate that the current management is still
> successfully trading on those years of goodwill without living up to
> the standards set by the Sands."

Thank you for posting the story.

nancy

On Thu, 7 Apr 2011 12:07:45 -0400, "Nancy Young"
> wrote:

>Landon wrote:
>> In a previous thread, I was asked about the sale of "King Arthur
>> Flour" company.
>>
>> I asked my niece who worked there before, during and after the sale of
>> the company to the employees, about what had happened and when.
>>
>> Here is her reply, verbatim:
>>
>> "It's a sad story, and very close to my heart. I worked there through
>> the sale, and for a year afterward, hoping things would turn around,
>> and it was awful watching the company deteriorate.
>>
>> Things began changing in 1996, when Frank Sands was ready to retire,
>> and by 2002, it was literally a different company. The company had
>> been in his family for 200 years, but his kids didn't want to take
>> over. So, a certain individual in his upper management convinced him
>> to "sell it to the employees" by creating an Employee Stock Ownership
>> Plan, (ESOP). He told Frank that he would be able to stay on the
>> board and watch over things. Well. that's not what happened.
>>
>> The purchase process took a while, but once it was complete, the
>> controlling stocks were held by a handful of upper management - all of
>> whom were relative "newbies" in the company. The employees didn't hold
>> enough shares to do anything, even as a group. Frank himself was
>> voted off the board at the first meeting after the purchase was
>> complete. The entire culture changed, from "every shipment of
>> products, and every batch of ingredients, is tested, and must meet our
>> standards" to "cheaper is better - and if there are issues, we can
>> refund those few who complain and still make a profit." This was a
>> wonderful company, and I hate that the current management is still
>> successfully trading on those years of goodwill without living up to
>> the standards set by the Sands."
>
>Thank you for posting the story.
>
>nancy


Oh! I need to add my thank you, also.

Boron

On Thu, 07 Apr 2011 12:22:59 -0400, Boron Elgar
> wrote:

>On Thu, 7 Apr 2011 12:07:45 -0400, "Nancy Young"
> wrote:
>>
>>Thank you for posting the story.
>>
>>nancy
>
>
>Oh! I need to add my thank you, also.
>
>Boron

You're very welcome Nancy and Boron.

My niece loved her job with King Arthur. It really made her angry when
she left the company as a result of this change in policy. She's still
angry about it.

In article >,
Landon > wrote, quoting his/her niece:

> The purchase process took a while, but once it was complete, the
> controlling stocks were held by a handful of upper management - all of
> whom were relative "newbies" in the company. The employees didn’t hold
> enough shares to do anything, even as a group. Frank himself was
> voted off the board at the first meeting after the purchase was
> complete.

Wow! That happens all too frequently.

--
Barb, Mother Superior, HOSSSPoJ
Holy Order of the Sacred Sisters of St. Pectina of Jella
"Always in a jam, never in a stew; sometimes in a pickle."
Pepparkakor particulars posted 11-29-2010;
http://web.me.com/barbschaller