A nationwide moving and storage company is laying off hundreds of employees and shuttering operations in eight states in an effort to stay afloat.
Richmond, Virginia-based WayForth’s CEO said the layoffs and reorganization are the result of a downturn in its business, which focuses on moving and storage services for seniors.
“WayForth will be restructuring its operations effective immediately because of a significant downturn in business and an inability to meet its financial obligations,” Craig Shealy, CEO and co-founder, said in a notice filed with the Texas Workforce Commission on Aug. 17.
The company is slashing its workforce from about 500 employees to 50 and exiting markets in eight states: Maryland, Massachusetts, Pennsylvania, New Jersey, Connecticut, North Carolina, Florida and Texas. WayForth will keep operating its location in Richmond.
Employees being laid off will not receive any severance packages, Shealy said.
WayForth operated 83 power units and had 79 drivers, according to the Federal Motor Carrier Safety Administration.
Shealy said the company tried to raise additional capital over the past several months from new and existing investors to keep WayForth from having to restructure its operations.
“WayForth has engaged in extensive negotiations with several potential private equity partners … [that] would have provided additional capital to support our continued operations[;] regretfully the potential transactions … fell through,” Shealy said. “Despite our continuing best efforts … WayForth’s largest shareholders and potential investors have decided against making additional investments in the business.”
The company was co-founded in 2016 by Shealy and Pete Shrock to provide families with logistical and financial services related to seniors moving or downsizing their living arrangements.
WayForth’s reorganization could leave some customers in a bind. On its website, the company said most services at facilities outside of Virginia would not be completed after Aug. 18 and clients with property in storage must remove it by the end of the month.
Watch: Will Mexico cross-border trucking be a boom or bust the rest of the year?
Click for more FreightWaves articles by Noi Mahoney.
More articles by Noi Mahoney
Canadian trucking company fined $37K for failing to clean up fuel spill
US and Canada battle over lumber imports
US calls for dispute panel in spat with Mexico over corn trade