Voluntary Liquidation Notice to Our Valued Customers and Creditors

Hallman Industries Closing After 20 Years

After two decades of dedicated service and innovation, Hallman Industries LLC will be winding down operations and ceasing all business under the Hallman brand. This decision, though difficult, is the result of several compounding factors that have made continued operations financially unsustainable, including:

• •   Persistent inflationary pressures impacting operational costs
• •   Significant increases in both ocean and domestic freight expenses
• •   Escalating labor costs and the rising cost of doing business on major online marketplaces
• •   The recently imposed 35% tariff on our primary product categories, which renders the importation of our goods both currently in production and in existing finished inventory at the factory economically unviable

The Rising Costs of Business in a Competitive Market

Collectively, these challenges have created an environment where the cost of doing business, particularly in an already competitive and saturated market, has become untenable.

While Hallman Industries LLC has not initiated bankruptcy proceedings at this time, we are entering a structured voluntary liquidation process. This will involve a thorough review of our remaining inventory, financial obligations, and outstanding customer orders. Our objective is to fulfill orders wherever possible and to issue refunds when fulfillment is not feasible.

all while adhering to the framework of winding down a Texas LLC and principles of fairness, transparency, and fiscal responsibility. We anticipate this process will take several months to complete.

What Customers Can Expect

We fully understand the frustration and disappointment this news may cause, and we are deeply grateful for the loyalty, patience, and understanding of our customers and partners as we work through this challenging transition. We are committed to providing regular updates and clear communication throughout the process.

• •   Orders that cannot be fulfilled will be refunded. Our current goal is to process refunds within 6 to 12 months
• •   For partially fulfillable orders, customers will be contacted directly to discuss available options, including partial shipments or partial refunds.

Thank you for your trust and for being part of our journey

Sincerely,

The Hallman Industries Team