Logistics Company, Employing Thousands, Suddenly Halts Operations

(NationalUSNews.com) — Texas-based U.S. Logistics Solutions (USLS), formerly known as Forward Air Solutions, has abruptly ceased operations, much to the surprised dismay of their nearly 2000 employees.

USLS is a logistics company focused on last-mile handling and distribution of time-sensitive shipments. The company notified employees on Thursday, June 20, via conference calls or by text messages that they would be shutting down immediately. Former president of USLS, Eric Culberson, confirmed the news in a LinkedIn post, expressing regret about the sudden nature of the shutdown.

The company had many recent upheavals, however. Forward Air Solutions was purchased by Ten Oaks Group, which is a family office for a small consortium of private equity investors, in 2021. Ten Oaks then renamed the company and moved it from Tennessee to Texas. The company had several waves of layoffs leading up to the abrupt closure. The database of the Federal Motor Carrier Safety Administration (FMCSA) indicates that USLS had safety scores below the national average and their insurance remains active.

The federal Worker Adjustment and Retraining Notification (WARN) Act requires employers with more than 100 employees to provide them with a 60-day notice in advance of a massive layoff. Failure to comply with the WARN act could have legal consequences for Ten Oaks. USLS had 864 direct employees, 57 owners and operators, as well as 305 contractors and temps. While headquartered in Texas, they had facilities in Iowa, Florida, Indiana, Georgia, Indiana, Michigan, Maryland, and other states.

In a public statement, Ten Oaks indicated that their lender had unexpectedly decided to halt funding for US Logistics Solutions. The statement indicated they regret that the unforeseen decision left no time to provide employees with advance notice or to properly wind down operations. Culberson included in his LinkedIn post a call for employers looking for outstanding talent in the industry to consider hiring former USLS employees. The collapse of USLS creates a gap which will hopefully allow for growth of their rivals, or perhaps the rise of a new company, rather than permanent gaps in the logistics industry.

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