Monson Trucking officials say several of their paper product clients have gone out of business recently leaving them with no recourse but to shut down.

Recently Monson and their union drivers reached an agreement that they hoped would keep the company in business.

But it didn't work and company leaders say they are forced to shut down by the end of August if not before.

For almost one-hundred years Monson Trucks drove the roads of the Midwestern United States and Western Canada. But on Wednesday company leaders called their employees together to tell them they could no longer keep it together.

Nearly two-hundred workers will be left without work.

The fourth generation family-owned Monson Company will close offices and terminals in Duluth, Red Wing, Virginia and Mauston Wisconsin.

Union Steward and 22 year Monson veteran driver Mike Globe says he was shocked to learn of the shutdown after the union had agreed to major wage and health benefit concessions.

"A little disappointed, confused to what's going on after everything that we've given up that they'd turn around and close the doors."

Monson was started in 1915 by Ole Monson, and the Duluth Terminal was created to better serve the paper industry in Northern Minnesota.

Employment expert Drew Digby says the closure of Monson is an example of how troubles in one sector of the economy can have far reaching ripple effects.

"This shows we're going to have a lot of continuing problems with some industries over the next couple of months if not the next year, there'll be a lot in instances where there's layoffs in one industry that serves another industry."

Monson executives declined to comment on the timeline for the shutdown but Mike Globe says some of the terminals owned by Monson have already shut down.