K2 Sports plans to transition its shipping operations into a warehouse facility adjacent to the company’s new headquarters in Seattle. K2 began relocating its finance, legal, sales, customer service and operations personnel in September 2006, and with this new move, will consolidate the entire K2 Sports USA portfolio under one roof for the first time. The shipping department is currently located in Fife, OR. The move will be complete by the start of the 2007 winter shipping season and will use existing customer ordering systems. K2 said its Seattle location will eventually have more than 200 employees.

In other news, Nike, Inc. reached an agreement to acquire a 125-acre land parcel in Memphis, TN, known locally as Northridge, where it plans to build a new one million square foot footwear distribution center. The land purchase agreement was signed March 1, 2007, by Nike and Memphis-based Belz Enterprises.

The Industrial Development Board for Memphis and Shelby County also formally granted Nike's application for making Northridge eligible for Payments in Lieu of Taxes leases based upon the anticipated job creation and capital investment. The new facility, located in the Frayser area of Memphis, had already been designated as an “enterprise zone” targeted for a large employer to provide economic stimulus to the surrounding community. The new facility is expected to house employees from both Nike's existing Winchester Road facility in Memphis, and employees relocating from a second distribution center based in Wilsonville, OR.

A comprehensive business analysis projected several benefits to Nike and Nike retailer customers including: cost efficiencies totaling more than $200 million, reduced shipping times and increased service capabilities.