Texas-based U.S. Logistics Solutions has filed for bankruptcy liquidation, stating that its lender pulled the plug on its funding, which forced the company to shutter operations Thursday and left a disputed number of truck drivers, dock and warehouse workers, and sales and office personnel without jobs.
In a statement to FreightWaves Tuesday, a spokesperson for Ten Oaks Group, the private equity firm that owned the logistics firm, said the company is "deeply disappointed by the lender’s sudden decision to cease further funding for US Logistics Solutions, which left the company no time to provide advanced notice to employees or properly wind-down operations."
As of publication Tuesday, the company spokesperson said that all USLS employees had received their final paychecks, but no date was given for when they were paid. It’s unclear whether the owner-operators and independent contractors who hauled freight for USLS were paid.
Read related story here: Texas logistics company with 500 truck drivers abruptly ceases operations
USLS of Humble, Texas, filed its Chapter 7 petition Friday in the U.S. Bankruptcy Court for the Southern District of Texas.
In its bare-bones petition, USLS lists its assets as up to $100 million and liabilities as between $100 million and $500 million. The shuttered company states that it has up to 5,000 creditors and that funds will be available for unsecured creditors.
USLS’ five-page petition, signed by Andrew Lovrovich, executive chairman of Ten Oaks Group, did not list the names of its top secured and unsecured creditors.
To continue reading this article...
Already have an account? Sign In
Create a Free Account
No payment required
Anonymous 4
Make no mistake, the executive leadership at Ten Oaks was directly involved in day to day operations at USLS; not just capital expenditures, but all decision making from personnel placement, account management, even mundane salary and expense approvals. Ten Oaks controlled the check book. They, along with Silverman Consulting knew exactly what was up, as they paid themselves each week after loading the company with debt. We used to think that they simply made the worst decisions, now the conniving is apparent. They don’t care that they sullied the reputations of all the folks who went to the front lines and defended the organization. They also don’t yet realize just how much damage they have done to their own reputations and how this last gratuitous act is going to reduce their buying power and leverage. It’s one thing to try to screw people out of their hard earned wages, PTO and expenses. They are on another level, with total disregard for others. They call themselves a Family Office. Yet remain unconcerned with the families of day laborers, who literally live hand to mouth that didn’t get paid by the staffing agencies this week. Heartbreaking and Callous.
Anonymous
As an ex employee of USLS, I will attest that we have not received our last paychecks as of June 27. Now I can only believe that when they said we’ve been paid they meant, they’ve paid us all we’re gonna get.
Anonymous 2
Houston meeting made no sense if we were in such bad shape. Was shown projections of $10million turn around.
No Transition team that was spoke of on zoom termination…dedicated employees working with individual retailers to clear freight from buildings under no direction.
Cartage Agents owed thousands as factoring companies have fronted thousands for invoices that USLS has not paid said factoring companies. They will now claw back from said drivers who spent fuel, tolls, etc
Staffing agencies owed, no way to invoice last week for dock workers.
Divvy expense reports not processed,
Incentives no paid that have been earned, 100+ PTO hours owed.
Anonymous
In the past 3 months or so, USL hosted a company meeting for all employees explaining the growth and how we were doing better and adding more customers. As far as I was concerned the company was growing and getting more customers. We were lied to because knowing something and not letting your employees know is also considered lying. Drivers, cartage agents. PTO and expenses have not been paid as of 06/25/2024