Falcon says notifying workers of closing would have jeopardized company

Local News
Falcon Transport

YOUNGSTOWN, Ohio (WKBN) – Officials at Falcon Transport told the state they were late in filing their WARN notice to workers, which would have notified them of the company’s plan to close, because they didn’t want to jeopardize their ability to get paid, among other reasons. 

In a letter dated April 27 but not filed with the Ohio Department Job and Family Services until May 7, company officials listed several reasons for the closure, including the closing of GM Lordstown, a ransomware attack on their accounts receivable system and vendors suddenly demanding payment. 

We have not been able to give 60 days of notice because of the unforeseen business circumstances relating to material impairment of operations and inability to realize on outstanding receivables, including, without limitation, issues associated with Falcon’s largest customer closing several operations. – Falcon Transport letter to ODJFS. 

The notice says 162 workers are being let go, despite the fact that the company has hundreds of employees. The job losses are at the following facilities: Victoria Road in Austintown; Belmont Avenue in Liberty; and Baumhart Road in Lorain.  

Falcon’s website is still up and running and advertising for drivers with signing bonuses. It lists operations in Ontario,  Kansas, Michigan, West Virginia, Tennesee and Indiana. 

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