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.

Logistics Company Shuts Down Overnight, Stranding 1,200 Workers
Image Source: US Logistics Solutions/Facebook

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

A FreightCaviar follower sent in a copy of the late-night text message sent to USLS employees.
  • 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

Image Source: Eric Culberson/Linkedin
  • 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.

Source: FreightWaves

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