Large Carrier Suddenly Closes, Shuts Off Fuel Cards Leaving Drivers Stranded
Youngstown, Ohio – One of the largest flatbed carriers in the U.S., Falcon Transport Co., suddenly closed operations on Saturday shutting off fuel cards and leaving some drivers stranded.
According to numerous published reports, Falcon Transport Co. Director of Operations, Jayson Calhoun, notified the company’s nearly 600 drivers of the closure by email and text message which read,
“All Falcon Employees:
We regret to inform you that Falcon Transport Co. is not able to continue operations and will be shutting down effective today.
Please stop work you are doing for the company immediately.
You are not expected to return to work.
Please be on the lookout for further information we will be sending regarding the situation.”
According to a report by WKBN, Falcon Transport Co. driver Oliver Ford said he was stranded in Virginia and company officials instructed him to leave his truck where it is.
A flurry of social media activity has ensued as Falcon Transport Co. drivers have confirmed they have been left in a similar situation as Ford and were blindsided by the closure announcement.
Falcon driver, Kathy Riehle, who lives in New York, told Fox8 Cleveland she was able to speak to a company official about the situation.
“He told me he was in the process of contacting everyone,” Riehle said. “He said we may get our pay Monday if not we can take legal action.”
Fox8 Cleveland also spoke with Mike Russell, a former load planner for Falcon.
He told the news outlet, “As far as I know the DOT number is no longer valid so they can’t even really operate the vehicles on the street without having problems with the police, so these drivers are essentially stranded where they are at.”
Leading to the company’s demise was the closure of the Lordstown, Ohio, General Motors plant last December. GM was a major customer for Falcon Transport, according to various published reports.
In 2017, the Youngstown-based company was purchased in a leveraged buyout by CounterPoint Capital Partners, a California-based Private Equity group, for $27 million with an additional $33 million in debt-financing, for a total of $60M.
According to its website, Falcon was founded in 1903 and is a major service provider for U.S. steel mills, the Big Three Automakers, and Fortune 500 companies.
The Federal Motor Carriers Safety Administration’s (FMCSA) SAFER system reflects the company employed 585 drivers and operated 723 vehicles.
As of late last week, Falcon Transport Co. was still actively seeking to hire professional truck drivers even promoting a $5,000 sign on bonus, according to their website.
This is a developing story.
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