500 Truckers in Texas Fired Overnight Despite Company’s Business Surge

By: Georgia | Published: Jun 24, 2024

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. 

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The front view of the US Logistics Solutions building, featuring a modern design with a large glass entrance and the company's logo

Source: US Logistics Solutions/Facebook

A mere three years after a takeover by a private equity firm, every employee—from the warehouse floor to office chairs—found themselves jobless.

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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. 

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Aerial view of a trucking distribution center showing several trucks parked at loading docks and a vast parking area

Source: US Logistics Solutions/Facebook

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.

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A worker wearing a mask loads cardboard boxes into the back of a delivery truck at a loading dock

Source: US Logistics Solutions/Facebook

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.

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The storefront of a Bath & Body Works store, showing the entrance and display windows with promotional signs

Source: Bath and Body Works/Facebook

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.

Interior of a large warehouse showing conveyor belts filled with boxes and several workers managing the operations

Source: US Logistics Solutions/Facebook

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.

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A President's Heartbreak

Eric Culberson, the president of USLS, shared his devastation on LinkedIn.

A yellow road train truck carrying large industrial containers travels along a deserted highway under a cloudy sky

Source: Rhys Moult/Unsplash

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.”

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Behind the Sudden Closure

The decision to shut down came directly from Ten Oaks Group, the private equity firm behind USLS. 

Aerial view of a bustling container terminal filled with colorful shipping containers and a yellow crane moving goods

Source: US Logistics Solutions/Facebook

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.

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Regrets from the Top

Reflecting on the abrupt end, Culberson expressed a poignant regret on LinkedIn.

A semi-truck drives on a rural road during sunset, reflected in the side mirror of a car, with mountains in the background and a dramatic sky

Source: Josiah Farrow/Unsplash

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.

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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. 

Inside a warehouse, a conveyor belt system moves boxes past stationary red sensors, under bright industrial lighting

Source: US Logistics Solutions/Facebook

Despite these efforts, the company couldn’t stave off its eventual downfall.

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Impersonal Layoff Notices

Shockingly, some employees learned about the company’s closure through messages from the payroll company ADP, as reported by FreightWaves

A white semi-truck carrying a shipping container crosses a concrete overpass at dusk with a background of mountains and a sunset sky

Source: Avi Richards/Unsplash

This distant method of communication only added to the impersonal nature of the layoffs.

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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. 

erial view of a truck parking lot showing rows of semi-trucks and trailers neatly parked, with green and red trucks visible

Source: Marcin Jozwiak/Unsplash

This pattern illustrates the ongoing economic challenges that continue to pressure businesses across the nation.

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