LME, Inc. Faced Shutdown and Mass Layoffs

LME, Inc. was on the brink of collapse in the early 2000s.

The company struggled to stay afloat due to a combination of factors.

One major issue was the loss of a significant contract.

This contract accounted for a substantial portion of LME's revenue, and its loss had a devastating impact on the company's financial situation.

As a result, LME, Inc. was forced to shut down its operations and lay off a large number of employees.

This was a difficult time for the company and its workers, who were left without jobs and uncertain about their future.

A different take: Contract Freighters, Inc.

LME Inc. shut its doors abruptly in July 2019, leaving employees without a paycheck.

The company operated 30 facilities across 10 states, providing LTL coverage with over 1,200 tractors and trailers.

LME's website announced its closure due to unforeseen circumstances, with a message to employees stating that the lender was in control of finances and would need to be paid first.

This process took at least 90 days, causing significant financial strain for employees like Christian Dawson, who was working six days a week and had a baby on the way.

Dawson's situation is not unique, as LME was facing a large payout to workers of the bankrupt Lakeville Motor Express, which the National Labor Relations Board called “alter egos” of each other.

The NLRB ordered LME to begin paying out a $1.25 million settlement in June 2019, which would double to $2.4 million if payments were not made within 60 days from April 30.

LME officials denied allegations of wrongdoing, but were forced to begin paying back pay in June 2019.

The company's sudden closure has left many wondering about the true reasons behind its shutdown, with some speculating that it was a ruse to avoid paying union workers.

Recommended read: Diamond S Shipping Group Inc.

Over 200,000 lbs. of undelivered freight was left in limbo at the Appleton location after LME, Inc. closed last week. This freight now sits piled in an abandon loading dock and in the back of trailers that will soon be repossessed.

The sudden closure of LME, Inc. has left dozens of workers in Northeast Wisconsin looking for jobs.

A former employee of LME, Inc. returned to his former workplace to help get the undelivered freight where it needs to go, all while searching for a new job.

The company's statement blames the sudden end of operations on "unforeseen circumstances."

A second statement to employees on Sunday revealed that a lender now controls the company finances and must be paid in full before employees receive their checks. This process is expected to take at least 90 days if not longer.

The now empty LME, Inc. site in Appleton sits in the 2200 block of West Spencer Street, a stark reminder of the company's sudden and unexpected closure.

Only one car is left in the parking lot on Tuesday morning, belonging to a now former employee who described the closure as shocking and unexpected.