BBQ cabin business transitions to EOT after more than 20 years’ trading
Arctic Cabins, a Derbyshire-based manufacturer and installer of BBQ cabins, has transitioned to an Employee Ownership Trust (EOT).
The family-run firm, established over twenty years ago by owner Gareth Parkinson and his wife Virpi, takes inspiration from the Scandinavian trend for building sturdy wooden shelters, often with a central BBQ, in communities and national parks.
The company says demand for its products – including the popular Cabin Master brand – has skyrocketed due to the rise of homeworking since the pandemic.
Now, to protect the legacy built up by the Arctic Cabins workforce over the years, Parkinson has chosen to form an EOT to provide an exit route from the business.
An EOT hands ownership of a business to employees, with trustees appointed to “look after” shares on behalf of staff.
Geldards advised the company on the EOT process and on the purchase by the EOT of its entire share capital.
Geldards’ tax partner Andrew Evans led the deal, advising on all legal aspects of the transaction, aided by a team comprising of Debra Martin, Jenny Chatten and Hugh White.
Evans said: “It was great to be instructed by Gareth and the team at Arctic Cabins as long time clients of the firm, and take them through the challenges of a transition to employee ownership. The positive feedback from the initial presentation to all the staff and the enthusiasm of the employee trustees emphasised the suitability of Arctic Cabins for employee ownership. I look forward to continuing to work with Arctic Cabins in the future.”
Parkinson said: “When we first considered employee ownership for the business we needed some guidance on whether it would be the right fit for the business.
“Geldards supported us every step of the way, from considering our options in the first instance, to supporting our employees on the journey to becoming employee owned.
“The whole transition went very smoothly and we would like to thank Andrew and the whole team at Geldards for their invaluable support as we start this new chapter.”
Arctic Cabins is headquartered in Ilkeston and has a show site in Stapleford, Nottinghamshire.
