Future of historic fourth-generation Scottish pastry maker now in hands of 85 staff

Cumbernauld-based William Sword, which has been family-owned for more than 130 years, said the transition to an employee ownership trust (EOT) would give its staff direct control over their own future as the business targets further growth.

The company is a major supplier of pastry to butchers throughout Scotland, as well as to other pie-makers, food firms and stores across the UK. It has been owned by the Sword family since 1894.

It is also the business behind the Scottish Soup Company, which was launched just over ten years ago. That venture has grown into Scotland’s biggest chilled soup brand, supplying supermarkets and wholesalers throughout the country.

Brothers Douglas and David Sword, who have each been involved in managing the company for more than 40 years, will be stepping back to consultancy roles as part of the transition to an employee ownership model. They will be succeeded as managing director and finance controller respectively by Alexander Gordon and Caitlin Stevenson.

Douglas Sword said: “While we feel that this is the right time for us to step back, the idea of a trade sale - which might ultimately have led to distant owners and jobs being put at risk - didn’t interest us.

“We have a great team, many of whom have been with us for a long time. We wanted to give something back to the people who have worked so hard for us. Transitioning to an EOT allows us to do exactly that. Our customers also benefit from the continuity of supply.

“It’s a model which has worked really well for others. It has benefits to us, but also to the staff, who are now in control of their own destiny. The business is in their hands now. We are sure they will continue to grow and be successful.”

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Gordon said: “The move to an employee ownership trust marks an important moment for our business.

“I want to thank David and Douglas for the hard work and dedication they have put into building and guiding the company over many years. Their efforts have made this next step possible. Most importantly, this change recognises the commitment of our staff, whose contribution has always been at the heart of the business.”

The company’s range of pastry products includes traditional sweet and savoury, pies and pastries, chilled and frozen pastry products and chilled soups. The business received legal advice from Lindsays on its move to employee ownership.

Nicholas Howie, a partner in the corporate team at Lindsays, added: “The transition of William Sword to an EOT is a prime example of how the model can be used to recognise and reward expertise and experience of a company’s employees.

“Recognition is growing regarding the success of employee ownership as a means of succession in businesses, with benefits for all parties. I am sure that William Sword will continue to go from strength to strength.”