About 2,000 truck drivers, warehouse and dock workers and office staff at Humble, Texas-based US Logistics Solutions (USLS), formerly Forward Air Solutions, said they were blindsided Thursday evening when they were informed by conference call or text message that the company was ceasing operations and would not receive paychecks on Friday.
Eric Culberson, former USLS president, confirmed the shutdown in a LinkedIn post Saturday, saying thousands of workers were out of work after the company’s owner, a private equity firm. Ten Oaks Groupheadquartered in Charlotte, North Carolina, has ceased operations.
“Due to the abrupt decision by our private ownership group to close our doors just when business was booming, I am completely devastated and heartbroken for the more than 2,000 professionals I have had the pleasure of working with “Culberson wrote. “The timing of this closure did not give me the opportunity to thank my team for their commitment and support to our customers and each other. »
Ten Oaks Group has not released a statement regarding the closure. Curtis Griner, managing partner and general counsel of Ten Oaks Group, did not respond to FreightWaves’ request seeking comment on when former USLS workers should expect to receive their final paycheck and their paid vacation.
At the time of its closure, the company had experienced several waves of layoffs in recent months, according to several sources familiar with the matter.
USLS, a logistics company that provided last-mile handling and distribution of time-sensitive products, had 500 drivers and 732 powertrains, according to the Federal Motor Carrier Safety Administration’s SAFER website. The FMCSA database shows that the company’s insurance coverage remains active and its safety scores are well below national averages for driver and vehicle inspections. The trucking company has had one fatal accident, five injuries and 12 towing accidents in the past 24 months.
In February 2021, FreightWaves reported that Forward Air sold its Pool Distribution unit to Ten Oaks Group for $20 million. The unit included $8 million in cash and up to $12 million in earn-out based on financial performance.
According to its website, USLS was the first transportation acquisition by Ten Oaks Group. After acquiring Forward Air Solutions of Greeneville, Tennessee, the company renamed it USLS and moved its headquarters to Humble.
Some former USLS employees, who spoke to FreightWaves on condition of anonymity, said they were informed of the closure by payroll company ADP. They also said Ten Oaks Group struggled to secure additional financing from its lenders, forcing the private equity firm to abruptly close USLS.
According to Texas Workforce Commission Website, the USLS had not filed a notice of impending closure before Thursday’s closing. The company’s website no longer works.
Employers with more than 100 employees are required to notify workers under the federal Worker Adjustment and Retraining Notification (WARN) Act. WARN requires employers to give their employees 60 days’ notice of mass layoffs.
USLS operated 19 terminals, mainly in the East of the country, before closing its doors.
This is a developing story.
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