Texas Logistics Company With 500 Truck Drivers Abruptly Ceases Operations

by Clarissa Hawes of FreightWaves

About 2,000 truck drivers, warehouse and dock workers, and office personnel of Humble, Texas-based U.S. Logistics Solutions (USLS), formerly Forward Air Solutions, say they were blindsided late Thursday when they were notified via conference calls or by text messages that the company was ceasing operations and that they would not receive paychecks Friday.

Eric Culberson, former president of USLS, confirmed the closure in a LinkedIn post on Saturday, stating that thousands of workers were without jobs after the company’s owner, private equity firm Ten Oaks Group, headquartered in Charlotte, North Carolina, shuttered operations.

“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.”

Ten Oaks Group has not issued a statement about the closure. Curtis Griner, managing partner and general counsel for Ten Oaks Group, did not respond to FreightWaves’ request seeking comment about when the former USLS workers should expect to receive their final paychecks and paid time off.

At the time of its closure, the company had undergone several rounds of layoffs in the past few months, according to multiple sources familiar with the matter.

USLS, a logistics company that provided last-mile handling 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 the company’s insurance coverage remains active and its safety scores are far below the national averages for both drivers and vehicle inspections. The trucking company had one fatal crash, five injuries and 12 tow-aways over the past 24-month period.

In February 2021, FreightWaves reported that Forward Air was selling its Pool Distribution unit to Ten Oaks Group for $20 million. The unit consisted of $8 million in cash and up to a $12 million earn-out dependent upon financial performance.

According to its website, USLS was Ten Oaks Group’s first transportation acquisition. After acquiring Forward Air Solutions of Greeneville, Tennessee, the firm renamed it USLS and moved its headquarters to Humble.

Some former USLS employees, who spoke to FreightWaves on the condition of anonymity, said they were notified by payroll company ADP about the closure. They also said Ten Oaks Group was struggling to obtain further financing with its lenders, which forced the private equity firm to abruptly close USLS.

According to the Texas Workforce Commission website, USLS had not filed a notice of its impending closure prior to closing on Thursday. The company’s website is no longer working.

Employers with more than 100 employees are required to notify workers as part of the federal Worker Adjustment and Retraining Notification (WARN) Act. WARN requires employers to provide their employees with a 60-day notice of a massive layoff.

USLS operated 19 terminals, mainly on the Eastern side of the country, prior to shuttering operations.