ThredUp, an online retailer of women's and kids'
clothing, will locate its eastern U.S. distribution facility in Upper Allen
Township, Cumberland County, a move that will create 300 jobs.
The center is up and running with about 20 people already
hired, said John Voris, chief operating officer for ThredUp. The company, which
buys and sells second-hand clothing, received its first deliveries Tuesday, he
added.
The online ThredUp model is different than the
peer-to-peer model put forth by ThreadFlip and Poshmark, and others. Rather
than simply connecting buyers and sellers, ThredUp buys the clothing outright
from its sellers and then resells it to its buyers.
Based in San Francisco, the company has enjoyed explosive
growth since refining its business model to focus on children’s and women’s
clothes in 2012.
The company plans on making an investment of more than
$1.1 million at the 5050 Louise Drive location, said Lyndsay Kensinger, deputy
press secretary for the state Department of Labor and Industry. The location
was perfect because it has broadband access and is located to serve the entire
East Coast, said Voris, a former executive with Netflix. The Upper Allen
location beat out an Allentown facility, he said.
“We’re going to build out a network of distribution
centers and this is the second of many,” Voris said. “We want to get closer and
closer to our customers so we can cut that transit time down.”
Most new ThredUp employees will be sorting and
photographing clothes that come in, he added, and will be paid $10 an hour.
Managers can earn between $60,000 and $100,000. All permanent employees are
offered 3,000 shares of ThredUp stock that vests after four years.
The company received a funding package from the
Department of Community and Economic Development, including $900,000 in Job
Creation Tax Credits.
“The company must report jobs created annually and are
awarded Job Creation Tax Credits after the full-time jobs are created,”
Kensinger said via email. “The company has up to three years to create the full
commitment of jobs.”
The ThredUp model works this way: a customer requests a
“clean out bag” from the company, which is delivered for free. The customer fills
the bag with all the clothes they wants to get rid of and mails it back to the
company. ThredUp buys everything that is in good enough condition, returning or
donating the rest, at the customer’s option. The customer receives credit to
buy other clothes, or can cash out through PayPal.
The project was coordinated by the Governor’s Action
Team, a group of economic development professionals who report directly to the
governor and work with businesses that are considering locating or expanding in
collaboration with the Cumberland Area Economic Development Corp.
For more information on thredUP, including jobs available
in Cumberland County, visit www.thredUP.com.
Source: Central
Penn Business Journal
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