Softstar Shoes Transfers Ownership to 30 Employees as US Worker-Buyout Funding Reaches $865 Million
Updated
Updated · BBC.com · Jun 14
Softstar Shoes Transfers Ownership to 30 Employees as US Worker-Buyout Funding Reaches $865 Million
1 articles · Updated · BBC.com · Jun 14
Summary
Softstar Shoes has been owned by its 30 employees since January after founder Tricia Salcido sold the Oregon shoemaker through an Employee Ownership Trust while staying on as CFO.
Salcido, 56, chose the structure to plan for retirement while protecting local jobs and keeping artisan shoemaking in the US rather than risking a sale to a cost-cutting outside buyer.
Under the trust model, employees do not pay upfront; future profits fund installment payments to Salcido, leaving her exposed if the business underperforms but giving staff a direct share of annual profits.
Employee ownership is gaining traction in the US, with one 2025 study estimating up to 600 firms a year are being sold to workers and financing funds rising 78% to $865 million from $500 million in 2024.
That growth comes as about 6 million US small and midsize business owners are expected to retire by 2035, a transition supporters say could push more firms toward EOTs, ESOPs and worker co-operatives.
Employee ownership promises wealth, but what happens to workers' savings if their co-owned business fails?
With federal support growing, what key barrier still prevents widespread employee ownership across America?
Can employee-owned firms compete with aggressive rivals without sacrificing their unique culture?
From Softstar Shoes to KKR: The 2026 Surge in Employee Ownership Trusts and Worker Buyouts
Overview
In early 2026, Softstar Shoes made a pioneering move by transitioning to employee ownership through an Employee Ownership Trust (EOT) model, placing itself at the forefront of a new business trend. Despite this innovative step, the company faces a major challenge: most people and businesses are unfamiliar with employee ownership models, as highlighted by Tricia Salcido’s remark that 'no one's heard of them.' This lack of awareness creates hurdles for broader acceptance and understanding of the benefits. Softstar’s journey not only shows the potential of inclusive business models but also highlights the need for greater education and awareness in this area.