US Logistics Options Inc., a full-service logistics supplier, introduced that it was notified by its lender that it’ll now not obtain the funding essential to proceed operations, “regardless of the very best efforts by its devoted workforce,” in keeping with a press launch from USLS. It was introduced on Friday, June 21, that the corporate, which is greater than 30 years outdated, had filed for chapter beneath Chapter 7 and can liquidate its belongings instantly.
This information comes lower than a 12 months after the same announcement from freight provider Yellow, which filed for chapter on July 31, 2023, kicking off a protracted and arduous course of that FleetOwner continues to doc.
Earlier than the lender pulled funding, USLS applied many strategic initiatives geared toward stabilizing and revitalizing the corporate over a number of months, in keeping with the discharge. The discharge states that “the management group and core operations workforce … labored tirelessly to navigate the difficult market circumstances and enhance the corporate’s monetary well being.” Enhancements included optimizing operational efficiencies, exploring progressive options, and enhancing customer support to satisfy the calls for of the ever-changing logistics trade.
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The USLS management group searched alternate options to submitting for chapter, together with strategic partnerships and looking for extra funding; nevertheless, the lender’s swift termination of funding left USLS with “no different recourse,” the discharge mentioned.
Whereas management “deeply regrets” the impression of this improvement on its workers, stakeholders, and clients, the USLS management group has dedicated to making sure that the chapter course of is dealt with with integrity and transparency.
This information impacts USLS’ 864 direct workers, 305 contractors/temps, and 57 house owners/operators and their households.
The Chapter 7 chapter submitting will allow an orderly liquidation of the corporate’s belongings, making certain that collectors are handled pretty and equitably.
