After 99 Years in Business, Yellow Heading Toward Bankruptcy
As reported by the Wall Street Journal, Yellow, a company with a 99-year-old history and one of the largest trucking companies in the U.S., has closed its doors.
The company was the third-biggest U.S. trucker specializing in the less-than-truckload segment. Customers included Walmart, Home Depot, manufacturing companies and Uber Freight.
On July 30 the company send out notices to customers and employers saying it was ceasing all operations at midday on Sunday, the WJS reported. The company notified the Teamsters it intends to file for bankruptcy.
The 99-year-old company is known for its cut-rate prices and has more than 12,000 trucks moving freight across the country for Walmart, Home Depot and many other smaller businesses. What Yellow couldn’t deliver—despite swallowing rivals, getting union concessions and securing a government bailout—was consistent service for customers or profits for investors.
The Nashville, Tenn., company sent out notices to customers and employees saying it was ceasing all operations at midday Sunday. The Teamsters said the company notified the union it intends to file for bankruptcy.
The 99-year-old company is known for its cut-rate prices and has more than 12,000 trucks moving freight across the country for Walmart, Home Depot and many other smaller businesses. What Yellow couldn’t deliver—despite swallowing rivals, getting union concessions and securing a government bailout—was consistent service for customers or profits for investors.
The Nashville, Tenn., company sent out notices to customers and employees saying it was ceasing all operations at midday Sunday. The Teamsters said the company notified the union it intends to file for bankruptcy.
The paper reported that the company had been in strained financial shape for a number of years due to " botched acquisitions and labor strife." The company had also received a $700 million loan during Covid.
According to the New York Times, "As of the end of March, Yellow’s outstanding debt was $1.5 billion, including about $730 million owed to the federal government. Yellow has paid approximately $66 million in interest on the loan, but it has repaid just $230 of the principal owed on the loan, which comes due next year.
According to a report on AB7NY, while the Teamsters union agreed not to go on strike on July 27, an agreement could not be reached on a new contract. The union said that early July 31 had notified the company of the closing.
"Today's news is unfortunate, "said Teamsters President Sean O'Brien in a statement, " but not surprising. Yellow has historically proven that it could not manage itself despite billions of dollars in worker concessions and hundreds of millions in bailout funding from the federal government. This is a sad day for workers and the American freight industry.."
For additional details see the article in our sister publication Fleet Owner.
