500 Truck Drivers Lose Jobs After Logistics Firm Closes

(StraightNews.org) – Workers at the Texas-based company US Logistics Solutions (USLS) say they were blindsided when they received text messages saying they had lost their jobs and would not receive another paycheck. Around 2,000 people, including truck drivers, warehouse workers, and dock workers, were affected when the company’s owner, North Carolina-based Ten Oaks Group, ceased operations.

The firm’s former President, Eric Culberson, posted a message to social media saying he was “devastated and heartbroken” by the closure. He added that he wanted to thank thousands of workers for their “commitment and support” and their service to customers and each other.

USLS had already undergone several rounds of layoffs and was the Ten Oaks Group’s first transportation and distribution acquisition. The company handled the latter stages of delivery of time-sensitive products and employed hundreds of drivers, with its headquarters in Humble, Texas.

A spokesperson for Ten Oaks told reporters that the company filed for bankruptcy liquidation after a “third-party lender refused to move forward with financial support.”

In court filings at the US Bankruptcy Court for the Southern District of Texas, the company listed assets of less than $100 million and liabilities between $100 million and $500 million. It did not list its secured or unsecured creditors.

A press release from USLS said it had implemented numerous initiatives aimed at saving the company and “worked tirelessly” to improve its financial health and navigate a challenging market, but was eventually left with no choice but to close down. “The decision to file for bankruptcy was not taken lightly,” the statement read.

Last year’s data revealed that the number of companies filing for bankruptcy was at its highest level since 2010. There were 642 filings in 2023, up from 372 the previous year and slightly higher than the 639 filed at the peak of the coronavirus pandemic in 2020. The worst affected states were Texas, Florida, and California, and the consumer discretionary sector saw the highest filings at 82.

Copyright 2024, StraightNews.org