City closes two former UPS stores with licensing, financial troubles

The city of Chicago has permanently closed two former UPS Stores in Bucktown and Logan Square, citing expired business licenses and financial issues. The stores, located at 1658 N. Milwaukee Ave. and 2020 N. California Ave., have been operating without franchise agreements since March and were shuttered Thursday with orange closure notices on their doors.  

The Department of Business Affairs and Consumer Protection confirmed Friday that the licenses for the stores expired Nov. 15 due to a finance hold exceeding $40,000. “The closure is permanent unless a license is obtained,” spokesperson Stella Natufe said in a statement.  

This decision follows ongoing complaints from neighbors about inconsistent services and confusing signage at the locations. Despite losing franchise agreements, the stores continued using UPS branding, leading to allegations of deceptive practices. Citations were issued in April, but the business failed to resolve the licensing issues within the city’s 10-day warning period issued earlier this month.  

The Neely Group, owned by Morrell Steven Neely, has managed the stores since October 2022. However, franchise agreements were terminated by UPS in March after two missed payments. A bankruptcy judge upheld the terminations in June, according to Block Club Chicago.  

Neely, currently jailed in Hammond, Ind., on unrelated federal wire fraud charges, claiming UPS had unlawfully terminated the agreements, according to Block Club Chicago. “We didn’t do anything wrong. Everything falls on UPS’ lap,” Neely said, adding that he plans to appeal.  

Attorney Carmen Caruso, representing Neely in the ongoing appeal, criticized UPS, stating, “We believe they applied their standards against Mr. Neely in a discriminatory way. I intend to fight UPS until the ends of the earth.”  

UPS spokesperson Casey Sorrell clarified that Neely has not been affiliated with the company since March. “We are working to get the signs removed so customers know these are no longer UPS stores,” Sorrell said according to Block Club Chicago.  

Neely’s legal troubles extend beyond these disputes. He faces federal charges related to alleged fraudulent activity in the petroleum fuels industry and ongoing lawsuits in other matters, including allegations of squatting in a North Center property.  

For now, the two locations stand empty, marking the end of a contentious chapter for both the community and those involved.