Out of nowhere, US Logistics Solutions in Humble, Texas, let go of 500 truck drivers in a sweeping shutdown that impacted about 2,000 workers.
Despite riding high on strong business performance, the company shuttered abruptly, leaving scores scrambling for work.
Unexpected Closure Amid Business Boom
Just when things seemed on the upswing, US Logistics Solutions closed its doors for good.
A mere three years after a takeover by a private equity firm, every employee—from the warehouse floor to office chairs—found themselves jobless.
No Payday for USLS Workers
In a harsh twist, the workforce at US Logistics Solutions found out they were jobless and wouldn’t be getting their next paycheck, expected the very next day.
This sudden news hit hard, leaving many facing immediate financial uncertainty.
The Widespread Impact of Closing
It wasn’t just the drivers; the closure of US Logistics Solutions ripped employment away from approximately 1,500 other staff members.
Including staff involved in warehouse management, dock operations, and administrative roles, deepening the economic blow to the Humble community.
Crumbling Under Lost Contracts
Financial woes mounted at USLS after losing key contracts, like a lucrative $30 million deal with Bath and Body Works and another with Barnes & Noble.
These setbacks sliced into the company’s revenue, pushing it towards instability.
The End Road: Chapter 7 Bankruptcy
By the following Monday, it was official.
US Logistics Solutions was filing for Chapter 7 bankruptcy, opting to liquidate all assets and cease operations, sealing the company’s fate and ending its journey without hope of revival.
A President’s Heartbreak
Eric Culberson, the president of USLS, shared his devastation on LinkedIn.
He wrote, “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 for the 2,000+ professionals I’ve had the pleasure of working with.”
Behind the Sudden Closure
The decision to shut down came directly from Ten Oaks Group, the private equity firm behind USLS.
Culberson’s LinkedIn post reveals the complexity and abruptness of the decision, made more perplexing by the company’s strong business performance at the time.
Regrets from the Top
Reflecting on the abrupt end, Culberson expressed a poignant regret on LinkedIn.
He wrote, “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.” The closure was as sudden as it was severe.
A Failed Relocation Attempt
In a bid to revitalize the business, Ten Oaks Group had previously moved part of the business from Greenville, Tennessee, to Texas and rebranded it as USLS.
Despite these efforts, the company couldn’t stave off its eventual downfall.
Impersonal Layoff Notices
Shockingly, some employees learned about the company’s closure through messages from the payroll company ADP, as reported by FreightWaves.
This distant method of communication only added to the impersonal nature of the layoffs.
Echoing a Larger Crisis
The collapse of US Logistics Solutions is part of a broader trend affecting the U.S. economy, marked by an uptick in bankruptcy filings especially among small and medium-sized enterprises.
This pattern illustrates the ongoing economic challenges that continue to pressure businesses across the nation.
