California Trucking Company Abruptly Shuts Down, Investors “Threw in the Towel”
Paso Robles, CA – A California-based trucking business abruptly closed its doors on Friday as Michael Dusi Trucking and Michael Dusi Logistics (MDL) announced it was shutting down “effective immediately.”
Company leaders broke the painful news in an email/letter to employees, according to a report by the Paso Robles Daily News.
“The saga of Michael Dusi Trucking and Warehouse companies is a long one and like all great sagas, whether good or bad, there must be an end. This one has been a very bad end,” the letter stated.
MDL was founded 20 years ago by Michael Dusi and provided specialized logistics solutions to the California wine and craft beer industry including direct-to-consumer fulfillment and wine clubs, regional bulk, refrigerated, flatbed and dry-van trucking, heavy haul, over-dimensional, food grade tanker as well as truckload and LTL brokerage.
Additionally, according to the company’s website, MDL offered “120,000 square feet of secure, temperature-controlled wine and barrel storage space” in its two Paso Robles warehouses.
In March of 2018, Dusi sold controlling interest to Tattooed Dog Holdings and Headhaul Capital Partners LLC, a New York-based middle market private equity (PE) firm with 20 years of experience building businesses in the transportation, logistics and distribution industries.
In the letter sent to employees on behalf of nineteen remaining office personnel, they blamed the PE investors’ “failure of leadership” for the carrier’s demise.
Further, the office staff says the PE owners “threw in the towel” on the company and its employees.
“Unfortunately, the investors who came in to save the company were not the business-savvy personas they projected to all of the loyal employees… the investors and company leadership summarily departed to the East Coast without warning. Effectively, we have been left to close down the company with no guidance and no warning from our leadership team. We are very sorry this must end this way,” they wrote.
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The letter concludes this way:
“Finally, we want to apologize again for the abruptness and pain this will cause. We did our best to make this thing work for you and for us and we would have achieved it if not for the failure of our leadership.”
According to data from the Federal Motor Carrier Safety Administration (FMCSA), MDL operated 45 power units and employed 45 drivers.
The letter indicates a “skeleton staff” will stay on for a brief time until they can effectively dissolve all remaining business matters.
This is the second significant trucking closure in California just this month.
Transportation Nation Network (TNN) reported Rodgers Trucking Company (RTC), a 130-truck LTL carrier servicing Northern California will close its doors for good on April 30, 2020, after more than 48 years in business.
RTC owner Frank Ghiglione told TNN, “I’m 83 years old and I’m sick of it.”
Read more about RTC’s closure HERE.
Photo courtesy of Michael Dusi Trucking
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