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May 26, 2023

Ten Thousand Villages sells Brownstown warehouse for $12.1 million

A Bangladesh crafted Day Hamper for sale at the Ten Thousand Villages booth during One World Festival in the Alumni Sports & Fitness Center at Franklin & Marshall College on Sunday, September 11,

A Bangladesh crafted Day Hamper for sale at the Ten Thousand Villages booth during One World Festival in the Alumni Sports & Fitness Center at Franklin & Marshall College on Sunday, September 11, 2022.

Ten Thousand Villages’ sale of its Brownstown warehouse for $12.1 million is yet another symptom of the fair-trade retailer’s struggles.

The Akron-based nonprofit, which sells goods created by artisans in developing countries, finalized the sale of the 82,000-square-foot warehouse at 221 Forney Drive in July. It will continue to lease space in the building to store products it imports from around the world.

Ten Thousand Villages CEO Dan Alonso said the organization’s warehouse needs have decreased over the years due to the closing of several brick-and-mortar stores. He said it plans to use the proceeds from the sale to grow its remaining stores and online sales.

“Like many other brick-and-mortar retailers, Ten Thousand Villages struggled during the pandemic. As we rebuild, we are focused on making sure we are operating profitable stores and growing our eCommerce presence,” Alonso wrote in an email.

The nonprofit currently has 45 stores, two-thirds of which are run as separate organizations. Two have closed this year, and another has announced plans to close later this summer. Since 2016, a total of 24 stores have closed, including a flagship location at 240 N. Reading Road in Ephrata Township that closed in 2019. Ten Thousand Villages still operates a location at 3523 Old Philadelphia Pike at Kitchen Kettle Village in Intercourse.

The company’s annual sales were $14.7 million in 2021, up from $10.9 million the previous year, but still below pre-pandemic levels, according to filings with the IRS.

Ten Thousand Villages bought the Brownstown warehouse from developer Robert Redcay in 2014 for $8.3 million.

The building’s new owner is a holding company owned by Dwayne and Lavern Zimmerman, who are part owners of Ephrata Township-based AB Martin Roofing Co. Lavern Zimmerman did not return a call for comment at the business.

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Ten Thousand Villages was formed as a program of Mennonite Central Committee and was a pioneer of the fair-trade movement. Its original name was “Self Help Crafts” because of its mission to provide artisans from low-income countries across the globe with an opportunity to work toward financial stability.

In the 1980s, it grew to over 100 stores in the U.S. and Canada, mostly staffed by MCC volunteers. In 2000 it became a separate nonprofit, which the committee said would allow Ten Thousand Villages to grow and buy more products.

Today it sells goods from more than 20,000 artisans in 20 developing countries, 60 percent of whom are women.

Alonso, who took over as CEO in 2022, said Ten Thousand’s rebuilding plan focuses on growing its online and wholesale businesses, and making sure its stores are in strong locations where customers are looking to browse and shop.

“We are noticing that when and where customers are most interested in browsing and shopping in a physical store has changed. A key part of our re-building plan is making sure our stores are located in those high-foot traffic, highly-likely-to-browse locations,” he said.

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