Matheson Trucking and affiliates shutting down, laying off more than 300 workers

Sacramento-based Matheson Trucking Inc. and two subsidiaries are in the process of laying all 335 employees in the region and closing their doors after more than six-decades in operation.

The company, along with Matheson Postal Services and Matheson Flight Extenders, detailed the layoffs and the shutdown in multiple notices to the California Employment Development Department and Sacramento County.

The Matheson entities are large contractors for the U.S. Postal Service transporting mail across the nation.

The layoffs don’t just affect the Sacramento region. FreightWaves, a national trade publication, said close to 3,000 employees are being laid off across the U.S.

Federal law requires employers of more than 100 workers to report mass layoffs to state and local authorities.

A representative at Matheson Trucking’s main office on Gothe Road told a reporter that the company would have no comment.

Matheson Postal Services and Matheson Flight Extenders had filed for bankruptcy protection in the U.S. Bankruptcy Court for the Eastern District of California in May 2022, court records show.

Two months later, Matheson Trucking filed for bankruptcy protection.

The Chapter 11 bankruptcy allows companies to reorganize and make deals with creditors.

But Matheson Trucking and its subsidiaries said in its filings to the California EDD that the companies are ceasing operations.

FreightWaves said Matheson lost postal contracts and quotes a Nov. 30 letter the company sent to employees.

“The Matheson companies have experienced tremendous growth in the past 5 years both in revenue and its workforce,” the letter reads. “However, recent changes to our business and drastic losses in contracts have led us to Chapter 11, and ultimately this very difficult decision.”

FreightWaves wrote that Matheson Flight Extenders was in a dispute with the postal service over the operations of two first-class mail transfer centers in Atlanta and Brandywine, Maryland.

Matheson spent $24 million to upgrade the facilities after taking over operations in 2021 but encountered problems obtaining reimbursement from the USPS, FreightWaves said.

Meiko Patton, a spokesperson for the postal service, said it would have no comment.

“We are unable to discuss any contractual agreements with our vendors nor the financial status of Matheson,” Patton said.“However, we can assure customers there is no disruption to USPS transportation.”

The various Matheson entities announced the Sacramento region layoffs starting on Oct. 5 and extending through Dec. 1 in five separate notices to the California EDD. They also notified Sacramento County.

The layoffs include a wide group of employees including truckers, mechanics, secretaries, accountants, and the CEO of Matheson Trucking.

Some workers were laid off in early December, others have been given termination notices of Jan. 30 of next year.

In addition to its main headquarters in Sacramento, the Matheson group also has facilities in Metro Air Park and Bannon Street in Sacramento.

Family-owned Matheson was formed in 1962.

The Matheson group of companies was the 11th largest contractor to the post office in the federal fiscal year of 2022, with more than $200 million in revenue, according to law firm Culhane Meadows.

The firm said Matheson moved down from ninth place in 2021.