Over 2,000 employees at Humble-based U.S. Logistics Solutions (USLS) have found themselves suddenly without a job after the company informed them via text messages and conference calls that it was shuttering its operations, the Houston Chronicle reports. The abrupt decision by the Charlotte, North Carolina-based private equity firm, Ten Oaks Group, to cease funding did not come with the customary WARN notice—a federal requirement that mandates a 60-day warning for mass layoffs.
Former USLS president, Eric Culberson, shared his dismay over the situation, stating, "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," this disclosed in a LinkedIn post earlier in the week, FreightWaves, a global supply chain market data provider first reported the news of the layoffs and the same organization reached out to Curtis Griner, managing partner for Ten Oaks Group, who has not responded to comments about the layoffs, and employees were left bewildered Friday upon learning they would not receive their expected paychecks.
According to Laredo Morning Times, USLS filed for Chapter 7 bankruptcy on Friday and announced it would liquidate immediately. The logistics firm was responsible for the distribution of time-sensitive products and was previously known as Forward Air Solutions until Ten Oaks Group's acquisition in 2021. Employees, preferring to remain anonymous, have reported that the company was seeking additional investment and strategic partnerships to avoid closure, but the sudden end of funding from Ten Oaks left USLS with no other recourse.
The downfall of USLS is part of a broader trend in the freight and logistics industry, with recent weeks witnessing a spate of job reductions and facility closures across multiple states including Florida, Georgia, Illinois, Michigan, and Texas, as per the data analyzed by FreightWaves, systemic issues hinting at an underlying instability within the sector, issues that culminated in the loss of livelihoods for thousands who once formed the backbone of these now-diminished logistics operations.
