- National trucker US Logistics Solutions filed for bankruptcy, eliminating 2K jobs and taking 500 trucks off the roads.
- The company, which specialized in delivering retail goods, shut down due to an abrupt loss of funding.
- The closure is the latest in a growing list of trucking failures as nationwide freight demand slumps.
According to WSJ, US Logistics Solutions, a Humble, Texas-based trucking company, filed for Chapter 7 liquidation. It’s one of the largest trucking failures since Yellow Corporation’s collapse last year.
End of The Road
US Logistics Solutions, which employed 2K people and operated a fleet of over 500 trucks, specialized in moving retail goods from warehouses to store outlets. By pooling cargo from multiple customers, they provided cost-effective freight services.
The company announced its closure on Monday, attributing the decision to file for bankruptcy to the sudden withdrawal of funding from its lender. Despite exploring alternatives, including seeking additional investments and strategic partnerships, the company was left with no other options.
Ownership Details
US Logistics Solutions was acquired from Forward Air in 2021 for $20M by Ten Oaks Group, a family office investor. At the time, Ten Oaks was optimistic about the company’s growth potential.
However, financial troubles have mounted ever since. A bankruptcy filing in Houston listed the company’s assets between $50M and $100M and liabilities ranging from $100M to $500M.
Why It Matters
Retailers in business districts and shopping malls have been struggling with rising operating costs, lower foot traffic, and reduced consumer spending. At the same time, the trucking sector has suffered a two-year slump in freight demand, causing many companies to go out of business.
As an example, the past year alone saw the closures of Yellow, one of the nation’s oldest carriers, and Convoy, a technology-focused freight broker once valued at $3.8B.
