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KHS Purchases New Distribution Facility

Published March 11, 2008

DOMINGUEZ HILLS, CA (BRAIN)—KHS Bicycles has purchased a distribution facility in Louisville, Kentucky.

The warehouse will increase the company’s bicycle, parts and accessory distribution capacity to the eastern part of the country.

“This marks a significantly larger commitment by KHS to serving the needs of our customers in the eastern part of the country,” said Wayne Gray, vice president of sales and marketing for KHS. “We’ve been operating out of contract facilities for the past few years, while we shopped for and found the right facility to buy in the right location.”

The facility will go through some build-out and upgrades, and will begin shipping product a little later this year. Until that time, KHS will continue to ship from its current warehouse. KHS has seen a significant increase in sales through its east coast expansion. Both bicycle and part and accessories shipping have increased throughout the eastern United States.

“We ship quickly and can now reach the vast majority of all retailers in the U.S. within two days with regular ground shipments,” Gray said. “Since purchasing a facility is a big commitment, we took our time building up our systems and making sure we had the right location, the right building, and the right people in place. We’re very excited that we’ll be able to increase our output and better serve customers in that part of the country.”

KHS first opened a contract facility in Kentucky three years ago shipping bicycles. The company now ships nearly 200 brands of parts and accessories as well as KHS, Free Agent and Manhattan brands of bicycles.

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