Vernon Logistics Company Lays Off Hundreds in Split From Amazon


QX Logistix Inc. in Vernon is divesting from its Amazon delivery business to concentrate on warehousing, ecommerce fulfillment and transportation. The move will involve laying off 207 workers, of which 195 are delivery drivers and 12 are dispatchers, according to a letter the company filed with the state’s Employment Development Department. The employees were assigned to Amazon’s last-mile delivery stations for small packages in Atwater Village, Hawthorne, Rosemead and Culver City.

“We did not own, lease or operate those facilities — these were locations that we provided service to (Amazon),” said QX Chief Executive Christopher Carey. “We’re leaving that segment of the business, and we’re focusing on our warehousing and our transportation business units here in Vernon, which are growing significantly. We support the supply chain, which has been really on fire this last year.”

QX Logistix operates two warehouses in Vernon, totaling about 200,000 square feet. It provides storage, pickup, and pack-and-ship services for the distribution of product by pallet, carton and piece. It also offers inventory management, product preparation for sale, such as reticketing, label replacement, placing on hangers and repackaging. Its clients include Zara, Tesla Inc. and Peloton Interactive Inc.
The company also has a transportation unit, which operates 20 box trucks and 30 tractor-trailers.

“We’re doing a ton of store deliveries and container drayage and other work,” Carey said. “We’re growing like crazy just trying to keep up with customers’ demands.”
QX Logistix, founded in March 2019, is part of New York-Based Azadian Group, which provides debt and equity financing, and merger and acquisition advisory services to lower-middle-market businesses.

The group served as a lender to Elizabeth, N.J.-based EZ Mailing Services Inc., doing business as EZ Worldwide Express and United Business Freight Forwarders, which was generating about half of its annual revenue by delivering products to Forever 21’s 150 stores. The then-Lincoln Heights-based retailer filed for bankruptcy protection in September 2019, which in turn caused EZ Mailing to struggle to keep its financial obligations, according to documents filed with the U.S. Bankruptcy Court for the District of New Jersey. Azadian Group filed an involuntary Chapter 11 petition against EZ Mailing in April 2019, and its newly formed QX Logistix acquired EZ Mailing, including the contract with Amazon.

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