Hundreds of truckers found themselves stranded on the road when one of the largest flatbed companies in the country closed its doors without warning. Some drivers found out when their fuel cards stopped working, others when they received a text and email sent at the very end of the last day of operations.
Falcon Transport Co. is currently listed in the DOT database as having 723 trucks and 585 drivers. Adding in office and support staff, the company employed about 700 people. According to its website, Falcon was a family business started in 1903 with a horse and wagon and passed down through four generations of family ownership. But, in 2017, the company was bought by a private equity group, CounterPoint Capital Partners LLC.
In legal paperwork filed over a week after they closed down, Falcon blamed the shutdown on “unforeseen business circumstances” including the closure of a GM plant in Ohio who was one of their largest clients. But it may have been more than bad luck. A former Falcon executive who left the company shortly after CounterPoint bought it told FreightWaves that the new owners “had zero transportation experience.” Despite that, court documents from a lawsuit that has already been filed against Falcon and CounterPoint claim that CounterPoint executives were the ones running the show.
So, when April 27th rolled around, even Falcon’s director of operations, Jayson Calhoun, didn’t know he would be losing his job. Jobs were still be advertised, load orders were still being taken, and drivers were still being dispatched.
“We found out late Saturday morning from our ownership group and I was just as surprised and disappointed as anyone else,” Calhoun told FreightWaves.
Some dispatchers, coordinators, and other office employees found out when they showed up to work that morning and their key cards wouldn’t get them in the building. Some drivers found out when their fuel cards stopped working. But others didn’t find out until late Saturday night when they got an email and a text.
The email was from Calhoun:
“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.”
Some drivers continued on and delivered their loads regardless, unsure of what would happen if they abandoned them, and unable to get in touch with dispatchers to ask questions. On the Falcon Facebook page, drivers were asking if the message had been authentic.
It’s still not clear the extent of the damage. Since Falcon has begun liquidation, they have a responsibility to make sure their drivers receive any pay and benefits that they didn’t receive for work completed, as well as for an additional 60 days after notice of closure was given. But it’s not clear where that money will come from.
While the finances of Falcon are not known, it seems that the company was heavily in debt. Drivers were supposed to have been paid the day before, but no paycheck came. Paychecks had been late before. Healthcare was officially cut off when the company closed, but according to a second lawsuit filed against Falcon, money deducted from paychecks for healthcare hadn’t been used to pay for coverage in some time.
Since it appears Falcon was being operated by CounterPoint executives, it’s possible that a bankruptcy court could go after their finances to make any payments that Falcon’s liquidation can’t fund. In fact, one of the lawsuits explicitly names CounterPoint as a defendant. But CounterPoint’s website has been deactivated, executives are not responding to messages, and it appears that their phones aren’t working.
Source: ttnews, freightwaves, gobytrucknews, businessjournaldaily, ideastream, vindy, freightwaves, vindy, wfmj, tribtoday, wkbn
I would never venture into a company without at least researching to market first.
Leslie. You are so smart. You prolly would never work for a company that’s been in business since 1903. Keep giving such good comments on your way of doing things correctly
Lol. Exactly! Durtyda!
Leslie I think you’re a smart man. A clear red flag for me would have been the first (and for me the last) late paycheck. No way Jose would I believe an office oversight, computer glitch or the dog ate the paperwork had anything to do with me being paid late. Drivers work too hard and the majority of us remain loyal and grateful we have jobs to be treated as an afterthought. Too much of this is happening lately and its only glee to the larger carriers when this happens.
Huh. But the steel and car industries are doing so well. Both of which are, or were, Falcons primary clients.
Falcon was joined at the hip with GM AND Lordstown. GM was a major in the downfall of Falcon
I have always had a personal policy that if a check is paid late or not paid even once, and it isn’t just me being affected by some simple mistake, I am looking for another job. I don’t like people that don’t pay, or lie. I have seen too many times that companies like this screw over their employees as they go out of business. The ownership of this company should go to jail.
I put up with it for 8 months and finally the guy shut down and tried to screw some of us out of our last check but I had him over a barrel because of some text messages so I got my check but never again!! I learned my lesson that time !!
When I worked at Swift Transportation out of Jonestown there were vindictive driver managers who couldn’t understand the importance of hitting computer keys to indicate a driver had delivered his load and to pay him for it. I thought it bad enough many of those drivers who drove the N.E. region did so without EZ Pass and waited weeks for reimbursement for making the mistake of being loyal and not realizing there were being nothing else but used.
Michael, I agree…I don’t like people who lie about truckers like police officers…which also don’t pay, but get into your wages. Which still takes money away from trucker’s earnings.
“Comprehensive Logistics Co, Inc., once formerly linked to Falcon Transport Co., announced on Wednesday that it has hired the vast majority of Falcon’s drivers and has been able to maintain service to its customers with no interruption.”
This was a week ago – All of the drivers with decent MVRs got jobs.
Looks like falcon sold to counter point and screwed them over too and started another company named comprehensive logistics.
Comprehensive has been around for decades
I’m glad to hear that. So unfair when the hard working slaves of the trucking industry/ the drivers become the victims of greed and bad management of the corporations. So dishonoring also for the 4 generations of Falcon who didn’t value the dream and effort of the founders
That is why i keep my tanks full…least maybe get home..
Hahaha…good thinkin’.
I’d drive to the house and fill for an abandonment title
lol, that’s funny, and IF it actually worked that would be the easiest way to get a truck
Have you ever seen those trucks?? In the last few years they got bad ! Probably best to just turn around and sell it if you got it that way
Hmmm…that’s not a bad idea..
If Counterpoint deducted money from paychecks and didn’t pay for the health insurance, they have commited fraud and given long prison sentences. But if they make good on what is owed employees, then a shorter sentence could be offered.
Former Falcon driver here. All runs have been paid out, I received my final settlement pay today 5-10-19. As to the insurance, that should have been paid up to a month in advance, but apparently it wasn’t. That was $100 plus weekly withholding.
There is also outstanding vacation pay, accrued from last year that is also owed, to the tune of $180-$200 per day.
Myself, I am out 20 days or about $4,000.
Doubtful if any of that comes through. We shall see.
And I did have full tanks when I got the text message Sat night, I was lucky.
I didn’t deliver my load but contacted MO state police, Ryder & GM about its safe location. My truck was a Falcon/Penske lease, that I turned in to Penske. It was the right thing to do, no matter what some of you super truckers think…
Makes me happy to see that some people will still do the right thing, even if they have the chance to be vindictive. Awesome.
Sounds like when arrow went down in 2010.
My thought on Arrow exactly. With flatbed rates around $3 PM how on earth do you go bankrupt? Greed is a deadly sin.
Flat bed was a small portion of falcons business. The article is wrong.
I’ve that coming before with a company called shippers transport and I got out 6 months later they did the same it’s as dirty as it gets they should at least let the people know what’s coming that’s the coward way of doing business
I worked for shippers transport in elpaso as a mechanic
With the amount of flatbed freight waiting to be moved a shutdown/bankruptcy can only be chalked up to management shortcomings or a truly unforeseen set of circumstances that decimate any rainy-day safety-cushion.
That the new owners had zero transportation experience is likely a key factor.
Over-reliance on factoring companies is another.
The article is wrong. Flat beds were less than a quarter of their business.
Why would anyone expect to receive advance notice that a company was shutting down under these circumstances?
When the Lenders Cash in the chips that’s the end of the game!
So they can make plans to get home and not be stuck in a truck with no fuel 1500 miles from home??? Maybe?? Idk
By law they were required to give 60 days notice.
Maybe so but it’s not like anyone could sue over it. They’ll probably sell out quick as possible to profit as much as possible.
Sad regardless, I couldn’t imagine losing everything like that.
one small one in washington state did that, took all the tires and wheels off the new trailers, sold them, moved to canada.
PLOOF did similar prior to being purchased by Cypress Truck Line.
It was bled dry by management
Ploof sucked father died son took over ran it in ground
They should lock up all the executives from that company i liked that guys idea drive the truck home file abandonment title and if ya had a coil on hit the local scrap yard at least ya could buy your family some food for the next week
My motto has always been…..”I don’t work for free”. When my company pays me, it’s usually direct deposited into my bank account every friday morning! If it ain’t there, I don’t move an inch until the money is there!!
These things happen in the real world of business.
That is why you should always have enough cash on you to get home.
The purchasing company had no trucking experience??? How could that even matter? These companies are filled with college boys who are hired ONLY because they went to college and come out knowing everything, isn’t that true? Excuse me, I forgot about the college girls like the dispatcher who got all upset with me because I called in to let her know I was parked for the night at a truck stop in New Mexico. She sure let me know if was against company policy to leave the country with their truck and I was to get back to the USA as soon as possible!
😂😂 Seriously??
🤣🤣🤣🤣
Oh, I forgot about the college girl doing the news I once heard. She was doing a story about an octopus that was taken in by the zoo in the city because it was injured. (You do know what an octopus looks like, right?). She told her listeners how the octopus was now doing fine despite “having lost three of its testicles.”
Awsome
😄
These executives need to be sent to prison immediately for all fraudulent activity! They all seem to weasle out of their mismanagement of these companies funds and ruin so many lives while lining their own pockets as well as their shareholders coffers. It’s sickening to see such greed continue to go unpunished while hard working, honest men and women with families suffer.
The shareholders usually get screwed also.
I seen all this coming 19 years ago.
The world is coming to an end. Take note: I predicted it here.
It may take 10 billion years, or it could happen in the next five minutes. Either way, when it happens, I’m claiming credit for the prediction as though I had predicted every detail including the date and time – and I was the only person anywhere to predict the end of the world, at all.
Seriously… Everything ends. Trucking companies often end this way. It’s not that amazing of a prediction. And whatever you think that you knew, 19 years ago, cannot possibly draw a clear line of cause and effect to today, Nostradamus…
Another company that treats its drivers like crap.
“But there’s a driver shortage”
Sure there is its,all bs pay shortage and Donny with China,tariffs, looks like trucking gonna,suck bad this,year
How long did you sit there trying to connect this to the President? This is nothing more than a corporate raiding. They bought the company for the express purpose of busting it out, and selling off the assets. It happens all the time.
More freight for me!
Well it the not first time most likely will not be the last time. For you young drivers. Tell tell signs: late pay check, constant changing fuel cards, pm not being on time. See happening start looking and leave
I had a smaller company that tried to do that to me. I was told to make a detour to another city. Once in the city I was told to take the truck to the dropyard. Once I got into down I was told they were shutting the company down.
I lived almost 300 miles away I called my wife first so that she could pick me up after that was my lawyer he said take the truck home and once their we put a lien on the truck and I got all my money not leaving me stranrd keep fuel on those tanks never know what may happen.
bring the truck in like a lot of drivers no pay in my account. After
If I get a message that my company had shut down, I’m finding the nearest truck stop, parking that thing and calling enterprise. Shut down means shut down. That means no guaranty that your load or the truck is insured. Keep going to deliver the load or even try to get to terminal and you could be opening yourself up to liability if you get into an accident.
Take their truck home and put a lien on it for what you are owed. Add rrcovery fees and storage fees. If indeed “shut down means shut down”, then there will be no one and nothing wuth which to pay you, sue you, make any more valid claim of ownership than yours, or mess with your DAC report. If someone still thinks that truck or load should be theirs, they can cough up what’s owed to you for keeping it safe for them, and come get it. Otherwise, apply for the title after the appropriate lien salvage waiting period (usually 30 days).
That is so True.
Wasnt it arrow that did the same thing to their drivers years ago?
Any driver that parked the truck, and thumbed a ride home screwed themselves. I would have dropped the trailer, bobtailed home and secured the tractor. Monday morning I would be at the courthouse filing a lien against the truck for my money. Best case, the company doesn’t respond, and you are awarded ownership of the truck, worse case, they do respond, and make good on the debt, at which time you present them with a bill for “reasonable, and excepted” storage of the tractor. If the truck was issued to the driver, they cannot claim it was stolen.
Damn I feel sorry for the Driver’s and I am glad I didn’t go there after I call them and they told me to just come in and they would have me rolling in no time…WTF is going on with these Trucking company’s???
I have concerns with the company I work for I’m afraid to venture out but if they pull that on me I know what I need to operate there truck and I know what I don’t need to operate there truck and I know and I know what those things are worth and I know where to sell them I’ll get home and recoup my last paycheck
I mean their not there darn voice to text
I was with Arrow when they pulled this same crap. I was stuck in Ft. Meyers, Florida.
I sold all the chains and binders and 2 tarps off the truck. Sold the fuel to the guy parked next to me at the truck stop, rented an SUV, and shagged ass home to South Texas.
Please post the Counterpoint executives names, so “when” these fine gentlemen go to work for another company, we all know who they are and know to be wary of these wonderful gentlemen and how they treat our “brothers”. I would describe these “gentlemen” ,much, much, differently if I knew they would not call the FBI or facebook would print it. Abandon me out on the road?????????????? SCUM !