Pennsylvania brokerage lays off nearly 65 employees, sources say

At its peak, the company had around 140 workers, another source familiar with the layoffs at Elite Transit Solutions told FreightWaves, but is down to around 10 people, including Johnson. 

Headquartered in Pittsburgh, Elite Transit also has offices in North Carolina, Chicago and Arizona. 

The company hasn’t announced it is ceasing operations and is in “talks with another freight brokerage about a possible merger,” according to multiple sources.

“At this point, we aren’t sure what is true and what is not, but the writing has been on the walls for months that Elite hasn’t been doing well and is struggling to secure financing and pay carriers,” the source said.

While Johnson, who founded the logistics company in 2013, initially agreed to speak with FreightWaves about the ongoing financial situation at Elite Transit Solutions, he later declined to comment.

Some carriers haven’t been paid since May

One former employee said he became aware of Elite Transit Solutions’ shaky financial situation soon after he was hired. He said nearly 80% of the inbound calls were from trucking companies that hadn’t been paid for loads they hauled for the brokerage since May or June. They were instructed to transfer the calls to the billing department, which went to voicemail, but claimed that no one answered the phones.

“We were cut off by almost every factoring company you can think of,” the ex-Elite Transit employee told FreightWaves. “It got so bad that the factoring companies were taking money back from the carriers because the contract was between the factoring company and the carrier, not with Elite.”

“We heard from carriers that were forced to close their trucking companies, including one that had to sell his business and his home, because we hadn’t paid him,” the source said. “We received an email from the wife of a carrier owner whose husband attempted suicide and blamed Elite for not paying him.”

Carriers have been posting warnings about payment issues with Elite Transit Solutions since May.

Elite Transit Solutions also urged independent trucking companies to use its “preferred factoring partner,” Connect Capital LLC, headquartered in Miami, writing on its website that “in most cases, Elite drivers get paid in less than 24 hours.”

The business address for Connect Capital is listed as a townhome which was purchased by Johnson for nearly $2.2 million in March 2022. Johnson, who is listed as the only authorized member for Connect Capital. The Florida secretary of state’s office filed to have Connect Capital administratively dissolved for failing to file an annual report in September. 

“Why did they continue to hire people knowing they were on shaky ground,” the source said. “These recent layoffs have put the livelihoods of several people and their families in jeopardy.”

Do you have a news tip or story to share? Send me an email or message me @cage_writer on X, formerly known as Twitter. Your name will not be used without your permission.

Read more articles here:

‘Fraud, theft and abuse’ force Texas freight brokerage to shut down
Family-owned California trucking company ceasing operations after 95 years
40-year-old Montana trucking company, freight brokerage shutters operations