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2 Chicago UPS stores are taking packages but won't ship them out

Why isn't UPS shipping out packages from a Chicago store?
Why isn't UPS shipping out packages from a Chicago store? 02:34

CHICAGO (CBS) —The owner of two shipping and packaging facilities operating as UPS stores on Chicago's northwest side is under fire, after customers said they were misled into thinking the stores were fully functioning.

At one location, thousands of packages are reportedly still waiting to be shipped.

"This is fraud. If you can't ship out packages, then why are you accepting them?" said Kelly, who didn't want her last name reported.

It's the question many patrons at the UPS store in Avondale have after packages they dropped off to get shipped never made it out of the facility. In some cases, they've been there for weeks.

One photo snapped by Kelly on Tuesday shows hundreds of packages. Kelly herself went searching for answers after she received notice that the items she shipped had never arrived.

"There were other people in there trying to get their packages as well. One woman came in saying she shipped hers three weeks ago," Kelly said.

She refused to leave until she got her package, and the workers at the UPS store finally caved.

"I said, 'Yes, I am an irate customer because you have taken my package, and you have no intention of shipping it out,'" she said.

As it turns out, the Avondale UPS store located at 2020 N. California had a franchise agreement terminated by UPS on March 16 due to failure to meet financial obligations. The Neely Group owner also owns another UPS store at 1658 N. Milwaukee in Bucktown. Its franchise agreement was also terminated.

When that happens, UPS basically locks stores out of the computer network, so they can't ship anything. According to court filings, the franchise owner, Morell Neely, filed for bankruptcy shortly after losing the franchise agreement, which put everything in limbo. Because of that ongoing lawsuit, UPS can't force the store to take down its logo.

The stores remain open to serve customers with mailboxes at the site. CBS Chicago visited both locations, and workers said they're urging customers to go to other UPS locations.

CBS Chicago made several attempts to talk to the owner, Morell Neely, to find out why workers were still accepting packages. So far, there's been no response from UPS.

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