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Logistics Company Shuts Down Overnight, Stranding 1,200 Workers
Texas-based U.S. Logistics Solutions, owned by Ten Oaks Group, abruptly ceased operations, leaving employees jobless and freight abandoned across the country.
Corrections: Ten Oaks issued a statement, and this article has been updated to reflect those clarifications.
Update: Ten Oaks Issues Statement and Corrections
US Logistics Solutions had 864 direct employees, 305 contractors/temps and 57 owners/operators. Around 1,200 total, not 2,000.
The 3rd party lender refused to move forward with financial support for US Logistics Solutions, not Ten Oaks
USLS distributed final paychecks for time accrued before ceasing operations. However, certain drivers’ time was not yet processed at time of payment
Read the full statement at the end of this story.
In a shocking move, private equity firm Ten Oaks Group abruptly shut down its subsidiary, U.S. Logistics Solutions (USLS), on Thursday night, leaving thousands of workers high and dry.
The Brutal Breakdown
1,200 employees suddenly jobless
732 power units
19 terminals shuttered, mostly on the East Coast
"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." - Eric Culberson, former USLS President
The Late-Night News
Workers notified by text or conference call Thursday night
Message stated: "Effective immediately, US Logistics Solutions is shutting down, and all employment is terminated."
Employees told: "No routes should be run tonight, and all operations should be terminated immediately. Please do not return to work."
Promise of more information: "In the coming days, you should receive more information regarding the next steps."
The Corporate Shuffle
USLS formerly known as Forward Air Solutions
Acquired by Ten Oaks Group in 2021 for $20 million
Ten Oaks reportedly struggling with financing
"The timing of this closure did not give me the chance to thank my team for their commitment and support." - Eric Culberson
The Aftermath
Freight and trailers abandoned across the country
No WARN Act notice filed (required for large layoffs)
Ten Oaks Group silent on the closure
What's Next?
Workers left wondering about final paychecks and benefits
Customers scrambling to locate and recover stranded freight
Potential legal ramifications for lack of WARN Act notice
Official Ten Oaks Group Company Statement:
We are deeply disappointed by the lender’s sudden decision to cease further funding for US Logistics Solutions, which left the company no time to provide advanced notice to employees or properly wind-down operations. Despite the unwavering commitment of the company’s leadership team and workforce to navigate challenging market conditions and improve financial health, the ongoing turbulence in the trucking and logistics industry proved insurmountable. We profoundly regret the impact of this abrupt decision on the company’s employees, customers, and vendors. We also sincerely appreciate the hard work and dedication of each of the company’s 870 employees and 62 independent contract drivers.
Hi! I'm Adriana and I've been working for FreightCaviar as Head Writer for a little over a year now. Some of my favorite topics to cover are FreightTech, Green Freight, and nearshoring/reshoring.
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