Apparel importer to launch distribution center in Reno
A San Diego-based importer and distributor of clothing and home decor items will open a distribution center at Stead this summer.
Nitches Inc. initially expects to employ 10 people at the 75,000-square-foot facility at 12055 Sage Court.
The Economic Development Authority of Western Nevada, which helped facilitate the transaction, said the company ultimately will employ 35 people, and EDAWN estimated the first-year economic impact of Nitches’ decision at $3.8 million.
Eitan Haber, executive vice president of Nitches, said the company was drawn to Reno because it’s close to the Port of Oakland where most of Nitches’ product enters the country and because of northern Nevada’s strengths as a distribution hub.
The Stead center will be the national distribution center for Nitches.
The company, which was represented by Tom Miller of Miller Industrial Properties in its search for a location, leased the last remaining space in the Sage Court building owned by DP Partners. Mike McCabe handled the deal for DP Partners.
“DP Partners really accommodated Nitches on their critical timing criteria,” Miller said.
He said, too, the work by EDAWN’s staff proved to be a critical element because Nitches was looking at several sites around the country.
But EDAWN isn’t done, said Ken Pierson, the agency’s director of business development. He said EDAWN still hopes to convince Nitches to move its corporate headquarters from Southern California to the Reno area.
Nitches sells its branded products to department stores, specialty boutiques and discounters. It also develops and manufactures private-label apparel and home decor products for many retailers.
Its sales in the quarter ended Feb. 28 totaled $14.3 million, a 16 percent increase over year-earlier figures. It posted a loss of $511,000 for the quarter, and executives noted that price-cutting pressures are strong as consumer demand for apparel remains fairly weak.
In a filing with the Securities and Exchange Commission, the publicly held company said 98 percent of the merchandise it sells is imported.
The introductory 80-hour program — announced in May as one solution to Nevada’s oft-lamented skilled labor shortages — is designed to train people in construction, building maintenance and related trades.