Texas logistics company with 500 truck drivers suddenly shuts down operations

Texas logistics company with 500 truck drivers suddenly shuts down operations

Nearly 2,000 employees, including truck drivers, warehouse staff, dock workers, and office personnel at U.S. Logistics Solutions (USLS) in Humble, Texas, were shocked to learn on Thursday that the company was shutting down. The news came via conference calls and text messages, indicating they wouldn’t receive their Friday paychecks.

Eric Culberson, former president of USLS, confirmed the closure on LinkedIn, revealing that the private equity firm Ten Oaks Group, based in Charlotte, North Carolina, decided to close the company, leaving thousands jobless.

“The sudden closure by our ownership group, especially during a business surge, has left me heartbroken for the 2,000+ professionals I worked with,” Culberson wrote. “I didn’t get a chance to thank my team for their dedication and support.”

Ten Oaks Group has yet to comment on the closure. Curtis Griner, managing partner and general counsel, did not respond to inquiries about the employees’ final paychecks and paid time off.

USLS, known for last-mile logistics and distribution of time-sensitive products, had 500 drivers and 732 power units. Despite recent layoffs, the company maintained active insurance coverage and had safety scores well below national averages. Over the past 24 months, USLS recorded one fatal crash, five injuries, and 12 tow-aways.

In February 2021, Forward Air sold its Pool Distribution unit to Ten Oaks Group for $20 million, which included $8 million in cash and a potential $12 million earn-out. USLS was Ten Oaks Group’s first transportation acquisition, rebranded from Forward Air Solutions and headquartered in Humble.

Former employees reported being notified of the closure by payroll company ADP, citing Ten Oaks Group’s financing struggles as a key reason for the shutdown. The Texas Workforce Commission website indicated USLS did not file a closure notice before Thursday. Additionally, USLS’s website is now offline.

As per the federal Worker Adjustment and Retraining Notification (WARN) Act, companies with over 100 employees must provide a 60-day notice before a mass layoff. Prior to its closure, USLS operated 19 terminals primarily on the East Coast.

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