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News November 16, 2018

Deadly California Fires Impact Promo Companies

Promotional products firms in Northern California are dealing with personal heartache and professional fallout from the Camp Fire, the most destructive and deadliest in the state’s history.

By  Christopher Ruvo

Active wildfires in California as of Thursday.

For the team at ChicoBag Company (asi/44811), the Camp Fire is tragically personal.

The devastating wildfire, which had scorched 140,000 acres in Northern California as of late this week, destroyed the homes of three ChicoBag employees. Parents of employees of the Chico, CA-based supplier had also lost their homes to the roaring blaze, which incinerated the nearby wooded town of Paradise, CA in the foothills of the Sierra Nevada. “We’re a small community here, and this is having a huge impact on everybody – our employees, our partners and our clients,” Andy Keller, founder and president of ChicoBag, told Counselor.

As of this late-week writing, at least 56 people have perished and more than 300 people are missing in what is now California’s deadliest wildfire in modern history. According to a tally from earlier this week, the Camp Fire had razed at least 7,100 structures, most of them homes, making the blaze the most destructive in the history of the Golden State. “The damage and the death toll keeps rising,” said Keller. “It’s devastating that we have this level of loss of life.”

ChicoBag is just one of the promotional products industry companies contending with fallout from the Camp Fire in Northern California and the Woolsey Fire in Southern California, the latter of which has compelled tens of thousands of people west of Los Angeles to evacuate. Beginning with drought-dried earth and propelled by powerful winds, the Camp Fire was only about 40% contained late this week, continuing to roar in the wooded ravines and foothills of Butte County, Northern California.

There are two ASI-listed promo companies in decimated Paradise, Wilson Printing & Signs (asi/549309) and PIP Printing (asi/398580). Attempts to reach the proprietors were unsuccessful.

Keller’s company is located in Chico, east and down elevation from the fires. Still, everyone on the team is feeling the effects of the rampant flames. The Camp Fire prompted ChicoBag to close on Nov. 9 so employees could deal with personal situations resulting from the blaze. Keller soon learned that a Paradise-based design company he partners with was destroyed. Clients from Paradise and nearby areas were reeling amid the destruction too, he said. “There are people who lost their homes and their businesses,” Keller told Counselor. “It’s hard to say exactly what the local economic impact will be, but with so many people and businesses affected you have to expect there’s going to be an impact.”

Still, commerce wasn’t top of mind for ChicoBag. The company was keenly focused on how it can help its hard-hit employees and its community. Part of the outreach will involve donating reusable bags to be utilized by relief organizations and shelters in the distribution of clothing and food to fire-displaced locals. “We have an inventory of duffle bags and daypacks that we’ll also distribute to those in need,” said Keller, who is having displaced family friends stay at his home. “This is going to be a multi-year rebuilding effort, and a lot of people need help. There are good nonprofits out there to donate to, and I’d encourage people to do contribute,” Keller said.

Certainly, Dick Stein is focused on helping his neighbors. The owner of Chico, CA-based HJ Promotional Products has already donated money to relief efforts. “We know at least 50 people who have lost their homes,” Stein told Counselor. “It’s devastating.”

Stein is also printing hats at no charge for a local nonprofit impacted by the Camp Fire. He plans to undertake similar pro bono jobs for other individuals and organizations. “It’s the least we can do,” Stein said.

Amid the tumult, Stein didn’t have definitive word on how some of his Paradise-area clients were faring, but he was concerned for them. “We deal with some larger clients that have hundreds of employees, with many of those living in Paradise. I’m 100% certain that, at minimum, some of their employees lost their homes,” said Stein, whose business, home and employees were OK. “Paradise is a loss – a total loss. It remains to be seen how many people will move back there. Obviously, it will be difficult for businesses there to keep going with no infrastructure and no customers.”

Stein told Counselor the Camp Fire has so far resulted in a few cancelled orders for HJ Promotional Products. Still, given his business, he doesn’t anticipate any lasting sales slump. And really, he said, that’s not a concern at the moment. “Right now,” Stein said, “we’re focusing on how we can help people survive through this.”

In Southern California, the Woolsey Fire has burned at least 98,300 acres from Ventura County to Malibu and West Hills in Los Angeles County. The fire has claimed at least three lives and destroyed roughly 435 homes and businesses. As of late this week, the blaze was 57% contained.

Although many Los Angeles-based promo firms are open for business, several have had management and employees evacuated from their homes, including Top 40 supplier Innovation Line (asi/62660) and Corporate Supplies USA (asi/46744). Additionally, David Messe, president of San Fernando, CA-based Pinnacle Designs (asi/78140), and several of his employees have been forced to flee their properties.

“Our CFO was evacuated and the smoke is bad,” says Craig Nadel, president of LA-based Top 40 distributor Jack Nadel International (asi/279600). “I was scheduled to do a race yesterday and it was canceled. We have a few people who live near the fire and it is a problem.”

Local sales have dwindled over the past few days, according to LA-based supplier Level Enterprises (asi/67165) and Oxnard, CA-based supplier Retail-Pack (asi/82249). “Business has slowed down a little,” says Katrina Mulder, managing director at Retail-Pack. “Shipments and packages could be delayed a few days due to certain freeways being closed. It was a close call but we’re safe, thank goodness.”

More than 300,000 people have been forced from their homes statewide, CNN reported. The majority of those residents are in Los Angeles County, where 170,000 were evacuated. More than 8,000 firefighters – including many from out of state – were battling the Camp, Woolsey and Hill wildfires.

*John Corrigan contributed to this report.