A company that deals in stamps, coins and precious metals has moved its headquarters and will move some other operations out of Manhattan and New Jersey and into the Francis J. Clarke Industrial Park in Bethel, the company said in a media release.
But officials of Escala Group Inc. were tight-lipped about the move. “It”™s not company policy to get in the press,” said Matthew M. Walsh, president, chief financial officer and acting CEO of the company. “Whatever we put out (in the press release), that”™s what we”™re saying.”
The release said the company is consolidating its operations to reduce fixed costs and improve operating efficiencies. The company”™s North American philatelic operations, operating out of locations in West Caldwell, N.J.; Danbury; and New York City, will be combined under one roof in newly leased facilities in Bethel. The company”™s Web site shows the Danbury operations at Nutmeg Stamp Sales Inc., the New Jersey site at H. R. Harmer, also dealing in stamps.
According to a Securities and Exchange Commission filing, Escala asked to sublease its headquarters space at 623 5th Ave. in Manhattan, but the leasing agency decided instead it wanted to terminate the lease in mid-June.
“The consolidation of our North American philatelic operations under one roof is a sensible initiative that improves more than just our facilities costs,” Walsh said in the media release. “Manpower utilization, communication, material flow and other work processes will also improve and should result in additional value creation beyond our projected cost savings.”
Walsh said in the release the company projects cost savings from the consolidation plan of about $1.5 million, after one-time costs. “The cost savings will derive from lower personnel costs and lower general and administrative costs such as rent expense, maintenance and repair, and utilities expense at the former multiple locations.”
In addition, he said, “moving the corporate headquarters staff to more cost-effective space where we can also better integrate into operations brings our company closer together in more ways than just physical proximity.”
Walsh declined to say how much space the company leased in the industrial park, or how many employees will be staffing the operations. The consolidation is expected to be fully implemented by the end of October, according to the release.
The company describes itself as a leading auctioneer of stamps, coins, arms, armor and military items and other memorabilia, targeting both collectors and dealers. It is also a merchant-dealer of “certain collectibles and trader of precious metals,” with operations in this country, Switzerland, Germany and Hong Kong.
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