Brad Garberich, the CEO of Santa Fe Springs, CA-based APX Logistics, blamed the company’s fast expansion and “poor financial performance” for the parcel consolidator’s collapse on March 16 (to read that article, visit MULTICHANNEL MERCHANT.), according to a memo obtained by MULTICHANNEL MERCHANT.
In the memo, Garberich also said that the company will all but discontinue all operations and liquidate. Its lightweight express offering will continue but on a limited basis.
“Although APX Logistics created an aggressive business plan in 2005, expanded its business operations into the Southeast, and implemented significant cost-cutting measures, the continued increase in operating costs coupled with a more price-competitive marketplace has driven the decision,” Garberich said in the memo. “However, due to the poor financial performance, we were unsuccessful at raising the necessary working capital to keep APX Logistics operations running through the soft months of the early part of the year.”
APX Logistics intends to complete the deliveries of all the existing packages in its network over the next week. APX Logistics is committed to making this transition as seamless as possible for customers.
On its Website, APX Logistics claimed to be the USPS’s leading package partner and its largest Parcel Select mailer, processing more than 250 million packages and managings more than 200,000 truckloads a year. The company employed more than 1,850 workers and had 47 facilities nationwide.
Unlike parcel carriers such as FedEx and United Parcel Service, APX Logistics didn’t offer an end-to-end ground service but instead provided zone-skipping services to merchants, delivering parcels to post offices; from there the Postal Service delivered the packages to residences.
According to its bankruptcy filing, APX has 5,001-10,000 creditors; its estimated assets exceed $100 million, and its estimated debts exceed $100 million Among the largest creditors listed in the court documents are Werner Enterprises, Omaha, NE, $3,527,182.63; NYK/GST Corp., Memphis, TN, $1,381,585.05; DHL Express (USA) Inc./DHL@Home, Houston, $1,289,922.74; and Smith Transport, Chicago, $1,150,685.42.
Several calls to APX and its attorney were not returned.
Some related articles:
With the APX calamity, we thought we’d rerun an article on Multicarrier Shipping Solutions which originally ran Feb. 8. To read that article, click here.
Caught Short by the Bankruptcy? Click on these links:
Tools for Serious Shippers To read that article, visit MULTICHANNEL MERCHANT.
Four Key Logistics Goals To read that article, visit MULTICHANNEL MERCHANT..
Reducing Shipping Costs To read that article, visit MULTICHANNEL MERCHANT..