Vehicles and trailers sit in a Yellow Corp. facility lot, closed after the freight trucking firm ceased all operations, in Las Vegas, Nevada, on July 31, 2023.
Patrick T. Fallon | AFP | Getty Pictures
U.S. trucking agency Yellow filed for Chapter 11 chapter safety on Sunday, burdened with a heavy debt load after a collection of mergers and following tense contract negotiations with the Teamsters Union.
The chapter submitting in a Delaware courtroom lists estimated property and liabilities of $1 billion to $10 billion and collectors of greater than 100,000.
“It’s with profound disappointment that Yellow publicizes that it’s closing after almost 100 years in enterprise,” Yellow’s CEO, Darren Hawkins, stated in a press release.
Yellow, previously known as YRC Worldwide, is likely one of the largest U.S. trucking firms and a dominant participant within the “less-than-truckload” section that hauls cargo for a number of clients on a single truck.
Clients embody giant retailers equivalent to Walmart and Home Depot, producers and Uber Freight. Some have paused shipments to the corporate on fears they may very well be misplaced or stranded if the provider went bankrupt.
Yellow’s chapter submitting comes after Teamsters Union said late final month that it was notified that the corporate was ceasing operations.
The corporate has been in contentious negotiations with the union over an inside restructuring initiative meant to spice up effectivity.
It lately averted a strike by 22,000 Teamsters-represented employees.
Earlier than resolving the strike menace, Yellow sued the union in Kansas federal courtroom, in search of to dam a strike and saying that union’s refusal to barter had pushed the corporate to the “brink of extinction.”
The corporate’s struggles compounded with a steep drop in ecommerce shipments from early pandemic highs and an industrywide decline in freight volumes over the past 12 months.
Yellow, saddled with liabilities from its purchases of Roadway in 2003 and USF in 2005, reported complete debt of $1.5 billion final 12 months, in keeping with Refinitiv information.
U.S. taxpayers face potential losses if the corporate doesn’t repay a $700 million-loan the administration of former President Donald Trump issued to bail out the long-troubled and poorly managed trucking agency in 2020 below a pandemic aid program.