US Logistics Solutions Inc., a full-service logistics provider, announced that it was notified by its lender that it will no longer receive the funding necessary to continue operations, “despite the best efforts by its dedicated workforce,” according to a press release from USLS. It was announced on Friday, June 21, that the company, which is more than 30 years old, had filed for bankruptcy under Chapter 7 and will liquidate its assets immediately.
This news comes less than a year after a similar announcement from freight carrier Yellow, which filed for bankruptcy on July 31, 2023, kicking off a long and arduous process that FleetOwner continues to document.
Before the lender pulled funding, USLS implemented many strategic initiatives aimed at stabilizing and revitalizing the company over several months, according to the release. The release states that “the leadership team and core operations workforce ... worked tirelessly to navigate the challenging market conditions and improve the company's financial health.” Improvements included optimizing operational efficiencies, exploring innovative solutions, and enhancing customer service to meet the demands of the ever-changing logistics industry.
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The USLS leadership team searched alternatives to filing for bankruptcy, including strategic partnerships and seeking additional investment; however, the lender's swift termination of funding left USLS with “no other recourse,” the release said.
While leadership “deeply regrets” the impact of this development on its employees, stakeholders, and customers, the USLS leadership team has committed to ensuring that the bankruptcy process is handled with integrity and transparency.
This news affects USLS' 864 direct employees, 305 contractors/temps, and 57 owners/operators and their families.
The Chapter 7 bankruptcy filing will enable an orderly liquidation of the company's assets, ensuring that creditors are treated fairly and equitably.
