A truck and logistics company has abruptly shut – affecting 2,000 workers – just three years after being bought by private equity.
Out of the blue, staff at US Logistics Solutions were given news on Thursday that they were out of a job and would also not get their paychecks on Friday.
Around 500 were truck drivers, and the rest a mixture of warehouse, dock and office workers at the Humble, Texas- based company.
Some staff said that the loss of large contracts – such as a $30 million deal Bath and Body Works p;us also one with Barnes & Noble – caused it to struggle.
The 30-year-old company confirmed on Monday it had filed for Chapter 7 bankruptcy – meaning it has no intention of carrying on and will sell all its assets.
Eric Culberson, the president of USLS, said in a LinkedIn post on Saturday that he was ‘devastated’ for all the staff.
Around 2,000 staff US Logistics Solutions in Humble, Texas have lost their jobs
They were blindsided on Thursday with the news – and also told they would not get their final paycheck
The company has been bought out by private equity firm Ten Oaks Group, based in Charlotte, North Carolina.
‘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 2,000+ 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.’
Ten Oaks bought a part of Greenville, Tennessee-based Forward Air’s distribution business in February 2021, renamed it USLS and moved it to Texas.
Some former USLS employees, speaking anonymously to FreightWaves, said they were notified about the closure by payroll company ADP.
Ten Oaks Group struggled to secure further financing from its lenders, which forced the abrupt closure of USLS.
Prior to ceasing operations, USLS operated 19 terminals, primarily on the Eastern side of the country.
America has been hit with a wave of bankruptcy filings in recent months – hitting small and medium businesses.
Chapter 7 bankruptcy is more serious than Chapter 11, and means a business has no intention of carrying on and sells all its assets. Chapter 11 is considered a reorganization bankruptcy.
USLS operated 19 terminals before filing for Chapter 7 bankruptcy on Friday
‘Despite the best efforts by its dedicated workforce, the company was notified by its lender that it will no longer receive the necessary funding to continue operations,’ a statement released on Monday read.
‘The decision to file for bankruptcy was not taken lightly. The leadership team explored all possible alternatives to avoid this outcome, including seeking additional investment and strategic partnerships.
‘However, the abrupt cessation of funding left the company with no other recourse.’
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