Farmer Brothers was founded in the LA area in 1912 and has its headquarter in Torrance/Harbor Gateway.
Currently it employs 350 workers and it’s a very profitable company with net sales of $528 million and gross profits of $196 million in 2014.
Like other companies, California taxes and regulations are just too much.
Just like Toyota and thousands of other companies and entrepreneurs, they’re leaving California and like many others, they’re moving to Texas.
The estimated operations on savings will be $12 million or as high as $15 million a year.
As a business owner, I can tell you moving out of California is not an easy decision.
Besides leaving friends, family and good weather, as well as so many other great reasons to be in California, relocation is very expensive.
But what the company plans to do is sell its property that it has had since 1961. Where the corporate headquarters and production facilities are, they could get as much as $35 million to pay for relocation costs.
5.5 companies leave California every week.
It’s a tragedy of lost opportunity.
Governor Brown and California’s liberal Democrats talk about how great things are but the reality is you’re crazy to do business in California.
Any thoughts?
Email me at craig@craighuey.com
Comments 1
More bad news about a good company leaving this “rip off” state of high taxes and huge regulations that have suffocated all concerned. Also Craig I need to know the “ins and outs” of “prop 52”. Is this another rip off ?? Diverted funds from MediCal,not good.