Tag Archives: Yellow

Yellow Corp. freight company winds down its business seeking bankruptcy protection, leaving 30,000 without work

Yellow-Truck-Freight

Important Takeaways:

  • Bankruptcy becomes official for Yellow freight company; trucking firm going out of business
  • U.S. trucking giant Yellow Corp. has announced that it has declared bankruptcy following a tense standoff with the Teamsters Union and after a massive pandemic-era federal loan failed to stave off the company’s mounting debt.
  • The freight company based in Nashville, Tennessee, which employs about 30,000 workers, said in a news release on Sunday that it was seeking bankruptcy protection so it can wind down its business in an “orderly” way. The Chapter 11 petition was filed in federal bankruptcy court in Delaware.
  • While a Chapter 11 filing is used to restructure debt while operations continue, Yellow will liquidate and the U.S. will join other creditors unlikely to recover funds extended to the company, according to the Associated Press.
  • A dominant player in the supply chain industry, Yellow became the third-largest small-freight-trucking company in the U.S. with clients that included both big box retailers and small family businesses.
  • But the company had an outstanding debt of about $1.5 billion as of March and has continued to lose customers as its demise appeared imminent.

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Yellow, the 99 year old trucking firm, struggling under the weight of debt prepares for bankruptcy

Yellow Trucking

Important Takeaways:

  • Trucking giant Yellow shuts down: The 99-year-old company which has almost 30,000 staff and 12,000 big-rigs ceases operations immediately – despite $700M COVID bailout
  • Trucking giant Yellow collapsed on Sunday, ceasing operations immediately and leaving some 30,000 workers without jobs.
  • The closure is the biggest in terms of jobs and revenue in the U.S. trucking industry, according to The Wall Street Journal – which first reported its shutdown.
  • The company, which received $700 million in federal COVID relief funds in 2020, is preparing to file for bankruptcy and is in talks to sell off all or parts of the business.
  • The nearly 100-year-old firm is known for its competitive pricing and has more than 12,000 trucks shipping freight across the US for brands including Walmart and Home Depot.
  • But in recent years it has struggled under the weight of debt and had a highly contentious relationship with the Teamsters union: on Sunday, each side blamed the other.

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