About 2,000 employees of Humble, Texas-based U.S. Logistics Solutions (USLS) were caught off guard when they were informed late Thursday via conference calls or text messages that the company was ceasing operations and that they would not receive their paychecks on Friday.
Eric Culberson, former president of USLS, confirmed the closure in a LinkedIn post on Saturday. He expressed his devastation and heartbreak over the sudden shutdown, which left thousands of workers without jobs. “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. He regretted not having the chance to thank his team for their commitment and support.
Ten Oaks Group, a private equity firm headquartered in Charlotte, North Carolina, which acquired USLS in 2021, has not issued a statement about the closure. Curtis Griner, managing partner and general counsel for Ten Oaks Group, did not respond to requests for comment regarding the final paychecks and paid time off for the former USLS workers.
The company had experienced several rounds of layoffs in recent months, according to sources familiar with the situation. USLS, which specialized in last-mile handling and distribution of time-sensitive products, employed 500 drivers and operated 732 power units. The Federal Motor Carrier Safety Administration’s SAFER website indicates that USLS had one fatal crash, five injuries, and 12 tow-aways over the past 24 months. Despite the closure, the company’s insurance coverage remains active and its safety scores are below national averages for both drivers and vehicle inspections.
In February 2021, Forward Air sold its Pool Distribution unit to Ten Oaks Group for $20 million. This acquisition was Ten Oaks Group’s first foray into transportation, leading to the rebranding of Forward Air Solutions as USLS and relocating its headquarters to Humble, Texas.
Some former employees reported being notified of the closure by payroll company ADP. They also mentioned that Ten Oaks Group struggled to secure additional financing from its lenders, leading to the sudden shutdown of USLS. The Texas Workforce Commission website shows that USLS did not file a notice of impending closure as required by the federal Worker Adjustment and Retraining Notification (WARN) Act, which mandates a 60-day notice for mass layoffs.
USLS operated 19 terminals primarily on the Eastern side of the United States before ceasing operations. The company’s website is no longer operational, and the fate of the final paychecks and other financial matters remains uncertain.
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