INDIANAPOLIS - Ohio-based LGSTX Distribution Services Inc. says the loss of a contract with the U.S. Postal Service will affect more than 250 Indiana employees. In a notice to the state, the company says it is closing its facility in Indianapolis, however the contractor replacing LGSTX will offer continued employment to the affected workers.

LGSTX was notified by the USPS in late August that its contract will expire on September 30. The new contractor, Texas-based Alan Ritchey Inc., has already begun the process to ensure a smooth transition for the employees.

LGSTX says there will be no employment loss or mass layoff. The employees at the facility will officially begin work for Alan Ritchey on October 1.

According to the LGSTX website, the company was contracted to operate multiple mail processing facilities within the USPS network, as well as additional processing postal locations.