The bakery will adopt a similar structure to Aardman Animations which handed ownership over to its employees in 2018.Parsons Bakery employee owner Ivy Hallet with fresh baked bread at the Gloucester Road location(Image: PAUL GILLIS / Reach PLC)

One of the South West’s most popular bakeries has announced it is to become an Employee Ownership Trust (EOT) meaning it will be owned by its workers.

The third-generation, family-run Parsons Bakery has several bakeries dotted around Bristol after being founded in 1926, 99 years ago.

But, now, ahead of its centenary year, its owners have confirmed they will step back, leaving the business in the hands of their more than 400 employees from April.

“This isn’t just about ownership – it’s about securing the future of Parsons Bakery for the people who make it special,” Explained founder, Nick Parsons.

“For generations, our family has been at the heart of this business, but we’ve always known that our employees are what truly make it thrive. Now, as we take a step back, we do so knowing Parsons is in the best possible hands – those of the people who bake, serve and keep it running every day.”

The business began as a small bakery in Clevedon before opening a second store in neighbouring Nailsea and eventually opening shops across the entire South West.

Parsons Bakery employee owner Ivy Hallet with fresh baked bread at the Gloucester Road location(Image: PAUL GILLIS / Reach PLC)

Under the EOT umbrella, the trust will hold 100% of the company’s shares, acting as a legal entity overseeing the business on behalf of its employees. A similar structure is in place at Bristol’s famed Aardman Animations which handed ownership over to its employees in 2018.

The arrangement also allows for non-allocated profits to be distributed back to staff, ensuring that those who contribute to the bakery’s success directly benefit from it. This profit-sharing model will be based on sales-to-hours ratios and will allow for tax-free staff bonuses,

Employees will also have a say in the company’s future direction, with trustees appointed to represent their interests.

Both Nick and Nicola Parsons stepped back from daily operations a few years ago, continuing to support the team and new management with a carefully phased transition.

Parsons has insisted the ownership change will have no effect on customers.