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Thread: Falcon Transport closed ?

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    Default Falcon Transport closed ?

    This just came across the news feeds yesterday. No official announcement from the company, or creditors yet, but the drivers claim they have been told to stop any work for Falcon immediately.

    Falcon Transport drivers told to cease driving immediately after apparent closure
    Truck drivers for the flatbed truckload carrier, Falcon Transport of Youngstown, Ohio, said they received emails late April 27 stating the company was shuttering operations effective immediately.

    The carrier has 723 trucks and nearly 585 drivers, according to the Federal Motor Carrier Safety Administration’s SAFER system.

    Calls to Falcon Transport to confirm the closure were not returned late April 27.

    One Falcon Transport driver said he and other drivers received a message from Jayson Calhoun, director of operations of the company, instructing them to stop any work for the company “immediately,” but he hasn’t been able to confirm any additional information about the closure.
    The driver told FreightWaves late April 27 that he is en route to his delivery destination to the GM Plant in Arlington, Texas. He said his fuel card is still working and received his paycheck on April 25.
    Another driver confirmed that he received the same message, but did not get paid this week because of a “computer glitch.” He also received an email from his dispatcher telling him that “Falcon is done.”
    https://www.freightwaves.com/news/tr...parent-closure

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    Default Re: Falcon Transport closed ?

    A story about other companies stepping up to help and hire former Falcon drivers now out of work.
    The article has names and phone numbers of companies looking to, and that have hired Falcon drivers.

    Companies offer help to Falcon Transport truckers now out of work
    A few Falcon Transport drivers made it to the depot before getting the message on their inboard computers Saturday night that the company was ceasing operations. Now we're learning other trucking companies are willing to help them find new jobs.
    Several former Falcon drivers were unloading their cabs on Monday.
    Brian Chapman is one of them. He just bought a house and because of Falcon's demise, could miss his first mortgage payment.
    The company had new logos on the trucks and Chapman thought Falcon had a chance of surviving after losing General Motors.
    "It was a surprise. The only signs we had were a couple weeks of messed up payroll," he said. "We were still running like normal, still hitting 2,800 to 3,000 miles a week."
    https://www.wkbn.com/news/local-news...ork/1964031791
    222lifer likes this.

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    Default Re: Falcon Transport closed ?

    The first WARN act lawsuit is filed.

    Falcon Transport Faces Employee Lawsuit After Closure
    A Youngstown, Ohio-based trucking company laid off about 550 employees on April 27, only a year and a half after being purchased by a Los Angeles investment firm, and is now facing an employee lawsuit.
    Falcon Transport Co. sent emails to drivers on April 27 directing them to stop working and announcing that the company was shuttering all its locations, according to Jayson Calhoun, Falcon Transport’s director of operations, who spoke briefly to Transport Topics on April 30.

    Calhoun said the parent company, CounterPoint Capital Partners of Los Angeles, did not disclose why it was shuttering the 116-year-old company.
    Miller told TT that he is researching the company’s actions, which he said violated the federal Worker Adjustment and Retraining Notification Act of 1988. That law requires companies with 100 or more employees to notify their employees within 60 days of a mass layoff.

    Ohio’s Department of Job and Family Services lists no WARN notice for Falcon Transport.
    https://www.ttnews.com/articles/falc...-550-employees

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    Default Re: Falcon Transport closed ?

    The blame game is running at full speed over this trucking companies demise.

    Former Falcon Transport execs allege mismanagement, contract demands led to company’s abrupt collapse
    Former Falcon Transport executives allege that financial mismanagement and a poorly negotiated contract with General Motors led to the company’s abrupt closure on April 27.
    Falcon shuttered its doors after sending a message to nearly 500 drivers to cease driving immediately. The company also had nearly 90 office employees at the time of the closure.
    One former operations manager told FreightWaves the company was struggling to meet payroll every week prior to the sale of Falcon to private equity company, CounterPoint Capital Partners of Los Angeles, in September of 2017. Those financial issues continued under new management and until the company ceased operations on April 27.
    CounterPoint purchased Falcon in a leveraged buyout for $27 million, with an additional $33 million in debt financing, according to PitchBook.
    Sources who worked at Falcon at the time of the sale allege the Constantini family, which owned the company for four generations, had to pay the private equity group millions of dollars to buy the fledgling company to avoid shuttering operations.
    https://www.freightwaves.com/news/tr...t-collapse/amp

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    Default Re: Falcon Transport closed ?

    WARN act notices were finally sent ... a little late.
    Seems to be a disparity between the number of employees too.
    The DOT says they have 585 drivers. The company claims only 113 drivers.

    WARN notices say Falcon Transport being liquidated
    COLUMBUS, Ohio -
    Nearly a week-and-a-half after closing its headquarters and telling drivers to stop working, Falcon Transport has submitted notifications mandated by federal law.
    The Ohio Department of Job and Family Services on Tuesday received three so-called WARN Notices from Falcon, announcing it has closed its headquarters on Belmont Avenue in Liberty Township, its terminal on Victoria Road in Austintown, and a terminal in Lorain, Ohio.
    The letters, sent under the Worker Adjustment and Retraining Notification Act, blames what it characterizes as “unforeseeable business circumstances and the failure of a capital search” for the shutdown.

    The letters go on to say that Falcon is attempting to liquidate all of its assets.
    WARN notices say Falcon Transport being liquidated - WFMJ.com News weather sports for Youngstown-Warren Ohio

 

 

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