Workers get McCreary stake
By Gary Evans -- Furniture Today, December 21, 2008
NEWTON, N.C. — Some 800 employees of upholstery maker McCreary Modern here got a surprising Christmas present last week: They became part-owners of the company.
Developing an Employee Stock Ownership Plan has been a longtime goal of company Chairman and CEO Bob McCreary, who worked on the plan for a year before announcing it.
“We kept it under wraps, which was kind of a hard thing to do,” said President Rick Coffey. “We started at 7 a.m. and Bob went through all the company with his wife, Michelle, and made an informal announcement. We tried to stay ahead of the telephone but we had to make stops at six plants, so it made for a pretty good day.”
The ESOP gives the company's workers 30% of the business, with McCreary owning the other 70%. Coffey did not disclose the value of the employee stake, but said that many of the new owners were flabbergasted with the gift.
“They were delighted, pretty spellbound and a lot of people stood around with their mouths open,” he said.
The ESOP is in addition to other benefits that include a 401(k) plan, and is at no cost to workers. Employees are 100% vested after five years and can cash out, much like they can with a 401k.
McCreary said the plan is funded by current and future company profits.
“It has been our dream for many years to provide something over and above the pay and excellent benefits that our employees currently receive, and we believe our ESOP is an especially appropriate way to recognize that our employees are a primary reason for the success of this business,” he said.
“Being employee owned will allow us to be even more efficient while navigating our way through the current economic situation,” added Coffey. “Our plans are to continue to improve our operations during this economy downturn and emerge as an even stronger company than we are today.”
The company is a supplier of private-label, mid-priced upholstery and occasional furniture to retailers such as Crate and Barrel, and Room & Board.
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