U.S. Logistics Solutions (USLS), a Texas-based logistics company, abruptly ceased operations, leaving approximately 2,000 employees without jobs. This sudden closure was announced through conference calls and text messages, catching many employees off guard and resulting in missed paychecks.
USLS, formerly known as Forward Air Solutions, was acquired by private equity firm Ten Oaks Group in 2021. The company had 500 drivers and operated 732 power units across 19 terminals, predominantly on the East Coast. The closure follows several rounds of layoffs in recent months, signaling financial instability within the company.
Eric Culberson, the president of USLS, confirmed the shutdown in a LinkedIn post, expressing his devastation over the abrupt decision by Ten Oaks Group. Culberson lamented the lack of opportunity to properly thank his team for their dedication and commitment to the company’s success. He praised the professionalism and hard work of his former colleagues and called on other employers to consider hiring the affected employees.
“Due to the abrupt decision by our private ownership group to close our doors at the same time business was surging, I am completely devastated and heartbroken for the 2000+ professionals I’ve had the pleasure of working with,” Culberson wrote. “The timing of this closure did not give me the chance to thank my team for their commitment and support to our customers and to each other.”
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Sources indicate that the firm struggled to secure additional financing, leading to the sudden shutdown of operations.
The closure occurred amid a broader downturn in the logistics and freight market, which has seen numerous companies, including Yellow Corp. and Convoy, shut down or file for bankruptcy due to overcapacity and declining freight rates since early 2022. The ongoing financial strain in the logistics sector has been exacerbated by rising interest rates and tighter capital markets, impacting companies’ ability to secure necessary funding.
USLS’s failure to file a notice of its impending closure with the Texas Workforce Commission further complicates the situation, as it may have violated the federal Worker Adjustment and Retraining Notification (WARN) Act, which mandates a 60-day notice period for mass layoffs by companies with over 100 employees.
Information for this briefing was found via Freight Waves and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
