Harbor Freight Tools
Encyclopedia
Harbor Freight Tools is an American
privately held company that runs a chain of discount tool retail stores. The company was founded in 1968 by Allan Smidt, primarily selling through its mail order catalog, which still exists today. The Calabasas, California
based company offers a large variety of tools through its Web site, mail order catalog, and retail stores. Harbor Freight was one of the largest employers in Ventura County until their relocation to Calabasas, CA. It also previously owned and operated former online retailer OneStopGardens.com.
Harbor Freight operates offices in the United States
as well as China
. It owns the website www.harborfreight.com as well as the official blog site blog.harborfreight.com
, KY attached to what was then the location of the mid-west/east coast distribution center for mail-order. This new model was uncharted territory for the mail-order giant; however, it proved to be an incredibly profitable one. Harbor freight embarked on what would become a multi-billion dollar empire. Since that first store in Lexington, Harbor Freight has propelled to over 370 stores in 47 out of 50 states.
Also since January 1, 2011, their 30 day money back 90 exchange warranty has changed to a universal 90 day warranty as long as the customer has a receipt.
, Northern Tool+Equipment, Tractor Supply, Farm and Fleet, and Menards
. With the exception of Northern Tool, most all of their competitors complement Harbor Freight rather than compete directly with them. Most customers frequent both stores, as they have shared departments, but neither has everything of the other.
in Los Angeles Superior court against his son, Eric Smidt
, CEO accusing him of fraud and looting the company. Allan is seeking "unspecified actual and punitive damages and an injunction for allegations of fraud, breach of trust, undue influence, negligent misrepresentation, misappropriation of assets, breach of contract and elder abuse." Company spokesman John Batten has responded to the lawsuit “Family disagreements are never pleasant, but this lawsuit is incredibly sad. The assertions in the complaint are completely unfounded and they will be addressed in due course. None of this will affect the business or continued success of Harbor Freight Tools."
A settlement was reached between Allan and Eric as of April 2011, the details of which have not been released.
's overtime requirements and HFT therefore failed to pay them overtime wages for all time they allegedly spent performing work for HFT in excess of forty (40) hours per week. Plaintiffs are suing HFT to recover unpaid overtime wages, liquidated damages, attorneys' fees and costs.
Harbor Freight denies the allegations and asserts that it properly classified store managers as exempt from the FLSA's overtime requirements. HFT also asserts it properly paid store managers as allowed by law, and unpaid overtime wages, liquidated damages, attorneys' fees and costs should not be awarded to Plaintiffs.
The outcome of the lawsuit has yet to be determined as of October 2010.
Vice President of Human Resources Pete Roberts did an internal investigation and “found no evidence that Ms. Day, who is currently employed by the company, was the victim of unlawful discrimination”, and went on to call her claims "meritless".
Outcome is currently pending in court, as of August 2010.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
privately held company that runs a chain of discount tool retail stores. The company was founded in 1968 by Allan Smidt, primarily selling through its mail order catalog, which still exists today. The Calabasas, California
Calabasas, California
Calabasas is an affluent city in Los Angeles County, California in the western United States. It is located in the hills in the southwestern San Fernando Valley and the Santa Monica Mountains between Woodland Hills, Agoura Hills, West Hills, and Malibu, California. As of the 2010 census, the city...
based company offers a large variety of tools through its Web site, mail order catalog, and retail stores. Harbor Freight was one of the largest employers in Ventura County until their relocation to Calabasas, CA. It also previously owned and operated former online retailer OneStopGardens.com.
Harbor Freight operates offices in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
as well as China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
. It owns the website www.harborfreight.com as well as the official blog site blog.harborfreight.com
History
Allan Smidt, a businessman from Los Angeles, started Harbor Freight Salvage Company in Los Angeles, CA. The company bought and sold damaged freight goods. Run from the garage of his North Hollywood home, he originally sold to contractors from the back of his truck. Soon the company expanded to include a small army of telephone salesmen whose efforts helped grow the company. One could buy virtually anything they desired should it have been damaged in shipping. This is how the unique and unusual name "Harbor Freight" came about.Mail Order
The company expanded into mail-order and would eventually go on to acquire another mail-order company in the tool and equipment business, US General. At first the company mailed free sheets in standard envelopes. Virtually overnight sales continued to roll in and the company continued to experience a tremendous amount of success. In the early 1980s the company relocated to Camarillo, CA acquiring the former headquarters of Unity, another large mail order company. Harbor Freight launched its first full-blown mail-order catalog in the mid 1980s. Using a series of late night TV commercials in an advertising campaign, Harbor Freight grew its customer base to over 10,000,000 worldwide. Today Harbor Freight Tools customers can purchase directly from the Internet, 800 number or in a retail store.Retail Stores
Though primarily focused on tools, Harbor Freight did still deal in some salvage, and as they grew, so did everything else. Eventually they decided that they would try opening a retail store. The store format was created to liquidate both the salvage products as well as returned merchandise at blowout prices. Harbor Freight launched its first store in LexingtonLexington
-Places:In the United States:*Lexington, Kentucky, the largest 'Lexington'*Lexington, Massachusetts, the oldest 'Lexington'** Battles of Lexington and Concord, the first battles of the American Revolutionary War*Lexington, Alabama*Lexington, Georgia...
, KY attached to what was then the location of the mid-west/east coast distribution center for mail-order. This new model was uncharted territory for the mail-order giant; however, it proved to be an incredibly profitable one. Harbor freight embarked on what would become a multi-billion dollar empire. Since that first store in Lexington, Harbor Freight has propelled to over 370 stores in 47 out of 50 states.
Private label brands
About 80-90% of all products sold by Harbor Freight are private label store brands, or products offered by Harbor Freight and produced through manufacturers primarily in Asia. Harbor Freight Tools sells products under its store brands such as Chicago Electric, Drill Master, Central Machinery, Central Pneumatic, Central Hydraulics, U.S. General, Western Safety, One-Stop Gardens, Haul-Master and Pittsburgh Tools. In retail stores there is an option for extended warranties on power tools.Warranty
All Harbor Freight Pittsburg Brand hand tools receive a lifetime warranty, regardless of receipt. The warranty may not be honored if there is evidence of sabotage. Customers report that a receipt is NOT always required for direct replacement of failed hand tools.Also since January 1, 2011, their 30 day money back 90 exchange warranty has changed to a universal 90 day warranty as long as the customer has a receipt.
Corporate Affairs
Harbor Freight Tools is currently headquartered in Calabasas, CA having relocated expanded marketing, merchandising, and other support systems to a 90000 square feet (8,361.3 m²) in September 2010. Harbor Freight has over 2000000 sq ft (185,806.1 m²) of distribution space in Oxnard, CA, over 500000 sq ft (46,451.5 m²) of distribution space in Camarillo, CA, and over 1000000 sq ft (92,903 m²) of distribution space in Dillon, SC. It currently employs over 8,000 people worldwide and sells through its retail stores, catalog, and website.Competition
Harbor Freight's primary competition includes companies such as O'Reilly Auto PartsO'Reilly Auto Parts
O'Reilly Auto Parts , originally known as O'Reilly Automotive, Inc., is a publicly traded chain of auto parts stores that started with one store in Springfield, Missouri in 1957. It has since grown to include more than 3,469 stores in 38 states. The corporate headquarters of O'Reilly is located in...
, Northern Tool+Equipment, Tractor Supply, Farm and Fleet, and Menards
Menards
Menards is a chain of home improvement stores in the Midwestern United States.The privately held company headquartered in Eau Claire, Wisconsin has 262 stores in 13 states: Ohio, Michigan, Indiana, Illinois, Wisconsin, Minnesota, Iowa, Missouri, Nebraska, Kansas, South Dakota, North Dakota, and...
. With the exception of Northern Tool, most all of their competitors complement Harbor Freight rather than compete directly with them. Most customers frequent both stores, as they have shared departments, but neither has everything of the other.
Legal Controversy
In July 2010, founder Allan Smidt filed a lawsuitLawsuit
A lawsuit or "suit in law" is a civil action brought in a court of law in which a plaintiff, a party who claims to have incurred loss as a result of a defendant's actions, demands a legal or equitable remedy. The defendant is required to respond to the plaintiff's complaint...
in Los Angeles Superior court against his son, Eric Smidt
Eric Smidt
Eric L. Smidt is an American businessman. He is Chairman, CEO, and sole proprietor of Harbor Freight Tools. Harbor Freight Tools sales are reportedly in excess of $1.5bn a year.-Biography:Eric L...
, CEO accusing him of fraud and looting the company. Allan is seeking "unspecified actual and punitive damages and an injunction for allegations of fraud, breach of trust, undue influence, negligent misrepresentation, misappropriation of assets, breach of contract and elder abuse." Company spokesman John Batten has responded to the lawsuit “Family disagreements are never pleasant, but this lawsuit is incredibly sad. The assertions in the complaint are completely unfounded and they will be addressed in due course. None of this will affect the business or continued success of Harbor Freight Tools."
A settlement was reached between Allan and Eric as of April 2011, the details of which have not been released.
Employee and labor relations
Harbor Freight Tools is currently named the defendant in a class action lawsuit which names the plaintiffs as store managers employed August 2007 to present (October 2010). The plaintiffs claim HFT misclassified store managers as "exempt" from the Fair Labor Standards ActFair Labor Standards Act
The Fair Labor Standards Act of 1938 is a federal statute of the United States. The FLSA established a national minimum wage, guaranteed 'time-and-a-half' for overtime in certain jobs, and prohibited most employment of minors in "oppressive child labor," a term that is defined in the statute...
's overtime requirements and HFT therefore failed to pay them overtime wages for all time they allegedly spent performing work for HFT in excess of forty (40) hours per week. Plaintiffs are suing HFT to recover unpaid overtime wages, liquidated damages, attorneys' fees and costs.
Harbor Freight denies the allegations and asserts that it properly classified store managers as exempt from the FLSA's overtime requirements. HFT also asserts it properly paid store managers as allowed by law, and unpaid overtime wages, liquidated damages, attorneys' fees and costs should not be awarded to Plaintiffs.
The outcome of the lawsuit has yet to be determined as of October 2010.
Gender and Sexual Discrimination
Harbor Freight is currently facing a sexual discrimination lawsuit against them brought on by a female manager who worked there for 27 years. The manager alleges that her new supervisor was quoted as saying there are “too many women in the kitchen” in regards to women managers; shortly thereafter her job responsibilities began to shift to male managers in the company.Vice President of Human Resources Pete Roberts did an internal investigation and “found no evidence that Ms. Day, who is currently employed by the company, was the victim of unlawful discrimination”, and went on to call her claims "meritless".
Outcome is currently pending in court, as of August 2010.