A York firm has joined the growing band of legal businesses converting to employee ownership.

Guest Walker, which has a staff of 31, is now owned and run by an employee ownership trust (EOT) after partner of 41 years John Walker relinquished control. The move is designed to help the firm grow whilst ensuring its future independence.

Walker and co-directors Sean Gallagher and Louise Elliott will remain in position but will form part of a newly-formed EOT board. Emma Hartley, a longstanding legal executive with the firm, will be the employee representative on the board.

Gallagher said: ‘We are proud to announce that Guest Walker is now 100% employee owned. This reflects our ethos and values, which have been built very much around our employees, ensuring long-term security for the firm. The EOT will support the growth of Guest Walker by empowering and recognising staff input at all levels in the business. It also allows every employee to have a stake in our success financially, which we hope will continue to motivate staff and reward them for their ongoing contributions.’

Directors of Guest Walker – (L-R) Helen Burrows, John Walker, Louise Elliott and Sean Gallagher.

Directors of Guest Walker (L-R): Helen Burrows, John Walker, Louise Elliott and Sean Gallagher

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The firm is located in the city’s Shambles – a hotspot street for tourists – and was founded in 1981 by John Guest.

The most recently-published accounts, for the year to 30 September 2023, show the business in good health, with short-term debt reduced and net assets growing by 15% to £338,000.

The firm’s directors said they hope the benefit of staff having a more of a stake and shared sense of responsibility will lead to increased employee engagement and commitment to its success.

Hartley added: ‘Employees have always been encouraged to contribute ideas towards the business, and this takes it a step further to give them a stake in the company. I am delighted to be part of this exciting milestone in Guest Walker’s journey.’

The employee ownership model, most commonly associated with retail giant John Lewis, has become increasingly popular among firms looking for a succession plan but not wishing to sell out to a consolidator or private equity house. It is estimated there are between 30 and 35 employee-owned law firms in the UK out of 2,250 businesses overall. Supporters claim that 80% of employees report they felt increased motivation when they became owners in the business.