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Mikasa to close by spring 2008
By Holly Fisher
Electronic Media Editor
Mikasa, a well-known maker of tableware and flatware, is closing its Charleston distribution facility by next spring.
Parent company, ARC International is splitting its North American operations into Mikasa and ARC International North America. Mikasa will focus on its tableware and giftware brands, while ARC International North America will focus on manufacturing high-quality glassware for foodservice customers, businesses and mass customers in consumer goods. Both companies will continue to be wholly owned by privately held ARC International.
As part of this change, ARC is closing the Charleston facility located on Clements Ferry Road. In the short-term, the company also is closing the Mikasa warehouse facility in Markham, Toronto, and shifting service for Canadian customers to Charleston.
The Markham facility, which employs 35 people, will close by August or September. The Charleston, facility, which employs 175 people, is expected to close by March 31, 2008. A third party will assume warehousing and logistics support for the company.
The strategic split comes after more than three years as one organization and was based on declining volume.
“Our warehousing, distribution and logistics employees have done excellent work during a demanding time in our business,” Susan Saideman, current CEO of Arc International North America, said in a news release. “The need to close these facilities does not diminish our appreciation for their dedication to quality service. It is purely an economic decision that more closely aligns declining and very narrow product flows to our distribution infrastructure.”
Harry Wamboldt, vice president of logistics and compliance for ARC International and based in Charleston, said the move to close the Charleston facility had been talked about for some time at ARC’s corporate headquarters in France.
“As with any business decision, you don’t start (talking) on Monday and make a decision on Wednesday,” he said. “It was explored for many, many months.”
Official word came May 15, and Wamboldt said over the immediate 24 hours, managers have talked with every employee. ARC is providing a “substantial” severance package and outplacement assistance for all employees.
He said the company wanted to give adequate notice in an effort to relieve the stress that goes along with an announcement like this. Wamboldt said he isn’t sure if employees will be given the option to transfer to another ARC or Mikasa facility.
In fact, Wamboldt isn’t entirely sure what his own future holds.
“I’m committed to staying in the Lowcountry area at this point in time,” he said. “My position (at this time) has remained unchanged. It’s a topic for discussion.”
In addition, the retail store located at the distribution center will close. The Mikasa outlet store located in the Tanger Factory Outlet Center in North Charleston will remain open.
Mikasa opened in Charleston 10 years ago and has been a heavy user of the Port of Charleston, with more than 90% of the company’s incoming cargo passing through the port.
Wamboldt said he hopes another industry will take Mikasa’s place on Clements Ferry Road. Soon, the 580,000-square-foot facility will be put up for sale. It includes 60,000 square feet of office space.
“We certainly hope another industry will take it over and re-energize it,” Wamboldt said, noting the city of Charleston, Berkeley County and the Charleston Regional Development Alliance have been alerted to the fact the Mikasa facility will soon be available for potential clients.
A final sale price for the building has not yet been set.
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