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Superior Court in Los Angeles has announced the certification of a class action suit brought by former Mail Boxes Etc. franchisees against the chain's current owner, United Parcel Service (UPS). Mail Boxes Etc., a national chain competing with the Post Office, was one of San Diego's most prominent success stories until it was sold in mid-1997 to an overleveraged, acquisition-hungry conglomerate that collapsed into bankruptcy. In 2001, United Parcel Service bought Mail Boxes, and subsequently converted the units to UPS Store Centers. But franchisees chafed under UPS rules, such as the way it controlled pricing. Those who continued to operate Mail Boxes stores claimed their brand was destroyed. Both sued in L.A., and now that the class action status has been certified, the case can go forward.
Superior Court in Los Angeles has announced the certification of a class action suit brought by former Mail Boxes Etc. franchisees against the chain's current owner, United Parcel Service (UPS). Mail Boxes Etc., a national chain competing with the Post Office, was one of San Diego's most prominent success stories until it was sold in mid-1997 to an overleveraged, acquisition-hungry conglomerate that collapsed into bankruptcy. In 2001, United Parcel Service bought Mail Boxes, and subsequently converted the units to UPS Store Centers. But franchisees chafed under UPS rules, such as the way it controlled pricing. Those who continued to operate Mail Boxes stores claimed their brand was destroyed. Both sued in L.A., and now that the class action status has been certified, the case can go forward.