WALKER, Mich — A logistic company that lost a contract to deliver packages for Amazon is closings a West Michigan facility.
Illinois-based Bear Down Logistics, Inc. expects to close the Walker East facility, located at 2935 Walkent Dr. NW, on April 13.
"The entire facility will be closed and all employees at the facility will be impacted," a letter from Bear Down's Vice President of Operations Michael Diapiazza said. "This closure is expected to be permanent."
The closure will result in 110 people losing their jobs and comes as Amazon severs ties with several delivery services that fail to meet standards and expectations. A Bloomberg report from last week said the action underscores the challenges of outsourcing deliveries to new and untested companies, instead of traditional partners like USPS and FedEx.
The report also noted Bear Down is expected to shut down operations in four other states, including Illinois, Minnesota, Ohio and Virginia. There is a facility in Wisconsin, but it is not yet clear what the status of its operations would be.
Bear Down Logistics was launched in 2017 by executives who operated FedEx Ground routes in the Chicago area, according to its website.
An Amazon spokesperson told the Washington Post that the e-commerce giant occasionally needs to end a relationship with a partner, but remains committed to helping impacted employees find new opportunities with other delivery services or get a job at one of Amazon's delivery stations or fulfillment centers.
Amazon recently started hiring to fill more than 1,000 full-time, part-time and seasonal and flexible positions at a new distribution center in Gaines Township, located near 60th Street and Patterson Avenue. This is the first distribution center in West Michigan, but the company has invested $420 million in the state of Michigan with three other centers in metro Detroit.
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