Hill Dickinson advises Challenge-trg Group on transition to employee ownership

Law firm Hill Dickinson has advised recruitment firm Challenge-trg Group on a move to employee ownership of the business. It will now be majority owned by its employees through an Employee Ownership Trust (EOT).

Wigan-based Challenge-trg Group was founded by brothers Tom and Richard Cropper in 2011. The business has more than 400 full-time employees and a further 25,000 temporary workers on its payroll, working across three brands – Challenge-trg Recruitment, Challenge Logistics and Challenge-trg Skills.

As part of the transition, Tom Cropper, previously chief executive at Challenge-trg Group, becomes chair while Steve Imber is promoted from managing director to CEO of Challenge-trg Group.

Corporate partners Matt Noon and Elan Iorwerth of Hill Dickinson provided legal advice on setting up the EOT, assisted by senior paralegal Ann-Marie Martin (Corporate). Legal director Rebecca Layton and apprentice solicitor Becky Kirkham advised on the banking aspects and senior associate Patrick Reade advised on the commercial aspects.

Commenting on the deal, Elan Iorwerth said: “Tom and Richard have created a successful business model built on the strength of its people, so transferring the company into employee ownership rewards everyone by giving them a direct stake in that success. We fielded a multidisciplinary team to cover the full span of corporate, banking and commercial aspects of the EOT and were pleased to guide Tom and the team in successfully transitioning the business to employee ownership.”

The Cropper brothers will continue their oversight of the now half a billion revenue company, supported by the new independent board of trustees including employee representatives and senior management.