Cycle clothing and accessories firm, Kitsbow, has been purchased by its employees with the assistance of a group of local North Carolina investors. The transaction took effect on January 3, 2022 after 10 years of private ownership.
Effective immediately, employees will own a majority of the shares in Kitsbow Apparel PBC, which is organized as a Delaware public benefit corporation.
A release from Kitsbow notes that… ‘a public benefit corporation (PBC) empowers leadership of the organization to embrace ‘social and public good’ of both customers and employees, while operating in a responsible and sustainable manner, and place the interests of shareholders on equal footing.
‘Diversity and inclusion are also values threaded throughout a PBC. In contrast, traditional corporations are required to put shareholder return above all other priorities.’
In addition, Kitsbow has started the process to become a certified B Corp from the non-profit organisation B Lab.
‘B Corp Certification requires a holistic review of a business’s social and environmental performance, accountability and transparency, and is based on a vision of creating a community of for-profit companies committed to redefining success in business.’
Examples of privately-held B Corps include: Ben & Jerry’s, Patagonia, Plum Organics, and King Arthur Flour.
Since relocating to Old Fort, NC, in late 2019, Kitsbow notes that it has embraced a number of initiatives. These include:
- Training a workforce with no prior experience making premium apparel;
- Helping build trails in Old Fort for access by all;
- Making PPE for first responders and medical professionals;
- Making apparel in a sustainable way to better protect the planet;
- Building and operating a unique retail service with excellent and healthy food made locally;
- Hosting the first bike shop in Old Fort in decades;
- Using only compostable materials in all shipping and packaging; and
- Creating generous employee benefits, including 100% health insurance paid by the company.
“When the opportunity to buy the brand and all of its assets became available, the employee leadership was unanimous in doing so as a public benefit corporation, and immediately starting the process for certification as a B Corp as well,” explained David Billstrom, CEO of Kitsbow.
“We have been embracing social and public good since we landed in North Carolina to make clothes, so it was a natural step to make.”
Jessie Inglis, Director of Production for Kitsbow, added “We are beginning the new year with a bang, not only with employee ownership but also with a pledge to sell apparel only made in the United States.
“We sold the last of our offshore-made apparel at the end of last year, and from now on, other than gloves and socks, all of our apparel will be made in the US It is truly a very new year!”
Under the new ownership structure, all of the Kitsbow employees in Old Fort, NC are expected to stay. All were offered their same jobs, and all hourly employees received a significant raise effective January 2, 2022 to reflect the increased cost of living in Old Fort. Kitsbow will no longer have employees or an office in California.
‘CEO David Billstrom will hold the same title and role in the new organization, and will report to a new Board of Directors structured to be inclusive, diverse, and representative of the Old Fort community as well as the employees. Board members will be announced soon.
Terms of the sale, price, and the identity of the new local investors are not being disclosed at this time. Kitsbow Apparel PBC will continue to do business under the brand name Kitsbow Cycling Apparel.
“I think this is a tremendous outcome for the company, the team, and for the community – all of whom have created something quite special,” stated Kitsbow founder and long-time ‘Chief Obsessive’ Zander Nosler, who will continue as an advisor with Kitsbow in its new form.
“I’m thrilled that the company is moving forward even more aligned with our founding values, including allowing the people who do this incredible work to have a true stake in the company.”
Dustin Donovan, Director of Operations, and another senior leader of the new company, added “Our apparel revenue doubled in 2021, compared to 2020, and we plan a similar rate of growth for this year.
“This means we are still hiring; so if you know anyone who wants to join an amazing team of people from diverse backgrounds, please visit our website and apply.”
