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 surprised late Thursday when they were notified via conference calls or text messages that the company ceased operations and that they would not receive paychecks on Friday.
Eric Culberson, former president of USLS, confirmed the closure Saturday in a LinkedIn post, stating that thousands of employees were left without jobs after the company’s owner, private equity firm Ten Oaks Group, headquartered in Charlotte, North Carolina, closed the activities had ceased.
“Due to our private group’s abrupt decision to close our doors while business was booming, I am devastated and heartbroken for the more than 2,000 professionals I have had the privilege of working with,” Culberson wrote. “The timing of this closure did not give me the opportunity to thank my team for their efforts and support of our customers and each other.”
Ten Oaks Group has not issued 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 the former USLS employees could expect their final paychecks and paid leave.
At the time of the closure, the company had undergone several layoffs in recent months, according to multiple sources familiar with the matter.
USLS, a logistics company that provided last-mile fulfillment and distribution of time-sensitive products, had 500 drivers and 732 power units, according to the Federal Motor Carrier Safety Administration’s SAFER website. The FMCSA database shows that the company’s insurance coverage remains active and safety scores are well below national averages for both drivers and vehicle inspections. The transport company had one fatal accident, five injuries and twelve tows 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 consisted of $8 million in cash and an earn-out of up to $12 million, depending on financial performance.
USLS was Ten Oaks Group’s first transportation acquisition, according to its website. 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 notified of the closure by contracting company ADP. They also said Ten Oaks Group struggled to obtain further financing from its lenders, forcing private equity firm USLS to close abruptly.
According to the Texas Workforce Commission website, USLS had not filed a notice of the impending closure before closing on Thursday. The company’s website no longer works.
Employers with more than 100 employees are required to notify their employees as part of the federal Worker Adjustment and Retraining Notification (WARN) Act. WARN requires employers to give their employees 60 days’ notice of a large-scale layoff.
USLS operated 19 terminals, primarily on the eastern side of the country, prior to shuttering operations.
This is a development story.
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