{"id":1993440,"date":"2023-08-07T17:29:05","date_gmt":"2023-08-07T21:29:05","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trucking-giant-declares-bankruptcy-company-will-liquidate-entirely\/"},"modified":"2023-08-07T17:35:01","modified_gmt":"2023-08-07T21:35:01","slug":"trucking-giant-declares-bankruptcy-company-will-liquidate-entirely","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trucking-giant-declares-bankruptcy-company-will-liquidate-entirely\/","title":{"rendered":"Trucking giant files for bankruptcy, will liquidate completely."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ftrucking-giant-declares-bankruptcy-company-will-liquidate-entirely%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1993440&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Trucking Giant Declares Bankruptcy, Company Will Liquidate Entirely<\/h2>\n<p>Trucking company Yellow Corp. has declared\u200c bankruptcy after years \u200cof financial struggles and growing debt, marking a significant shift\u2063 for the U.S. transportation industry and shippers nationwide.<\/p>\n<p>The Chapter 11 bankruptcy, which was filed on Sunday,\u2062 comes just three years \u2064after <a href=\"https:\/\/www.westernjournal.com\/end-era-american-trucking-company-ceases-operations\/\" target=\"_blank\" rel=\"noopener\">Yellow<\/a> \u200dreceived $700 million in pandemic-era loans from the federal government.<\/p>\n<p>While\u200c a Chapter 11 filing is \u200cused to restructure debt while operations continue, Yellow, like other trucking\u200c companies in \u200crecent years, will liquidate, \u2063and the U.S. will join other creditors unlikely to recover funds extended to the company.<\/p>\n<p>Yellow fell into severe financial stress after\u200c a long stretch\u2064 of\u2064 poor management and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trucking-giant-declares-bankruptcy-company-will-liquidate-entirely\/\" title=\"Trucking giant files for bankruptcy, will liquidate completely.\">strategic decisions dating back decades<\/a>.<\/p>\n<p>In 2019, two <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/top-financial-analysts-warn-of-immediate-inflation-going-to-have-some-very-scary-numbers\/\" title=\"Top Financial Analysts Warn Of Immediate Inflation: \u2018Going To Have Some Very Scary Numbers\u2019\">trucking companies<\/a>, \u2064Celadon \u2063and New England Motor Freight, filed for <a href=\"https:\/\/www.westernjournal.com\/ap-lordstown-motors-files-chapter-11-bankruptcy-protection\/\" target=\"_blank\" rel=\"noopener\">bankruptcy<\/a> protection and \u2062liquidated.<\/p>\n<p>Former Yellow customers and\u2064 shippers may face higher\u200b prices as they take their business to competitors, including FedEx or ABF Freight, experts\u200c say \u2014 noting Yellow historically offered the cheapest price points in the industry.<\/p>\n<blockquote>\n<p>\u201cIt is with \u2063profound disappointment that Yellow \u200cannounces that it is closing after nearly 100 years in business,\u201d CEO Darren Hawkins said in a news release late\u200c Sunday. \u201cFor generations, Yellow provided hundreds of thousands of \u2064Americans\u200b with solid, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/white-house-releases-list-of-president-trumps-accomplishments-and-it-is-historic\/\" title=\"White House Releases List of President Trump\u2019s Accomplishments \u2013  And It Is Historic!\">good-paying jobs<\/a> and fulfilling careers.\u201d<\/p>\n<\/blockquote>\n<p>Yellow, formerly known as YRC Worldwide Inc., is one of the nation\u2019s largest less-than-truckload carriers. The <a href=\"https:\/\/www.westernjournal.com\/journalist-fighting-obtain-nashville-shooter-manifesto-receives-chilling-death-threat-go-prison-end\/\" target=\"_blank\" rel=\"noopener\">Nashville, Tennessee<\/a>-based company had 30,000 \u2064employees across the country.<\/p>\n<p>The Teamsters, which represented Yellow\u2019s 22,000 unionized\u2064 workers, said last week that the company gave legal notice for a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inside-the-nras-strategy-to-escape-disaster\/\" title=\"Inside the NRA\u2019s Strategy to Escape Disaster\">bankruptcy filing<\/a> and shut\u2063 down operations in late\u200c July following layoffs\u2063 of hundreds of nonunion employees.<\/p>\n<p>Teamsters general president Sean O\u2019Brien called the news \u201cunfortunate but not surprising\u201d in a July 31 statement \u2014 pointing to the financial chaos at Yellow.<\/p>\n<p>\u201cThis\u2063 is a sad day for workers and the\u2064 American freight industry,\u201d he said.<\/p>\n<p><a href=\"https:\/\/www.wsj.com\/articles\/trucker-yellow-prepares-to-file-for-bankruptcy-as-customers-flee-281151a6\">The Wall Street Journal<\/a> and <a href=\"https:\/\/www.freightwaves.com\/news\/yellow-executive-tells-sales-employees-company-will-file-bankruptcy-on-july-31\">FreightWaves<\/a> reported in\u200d late \u2063July that the bankruptcy was coming \u2014 noting that customers had already started to \u200dleave the carrier in large numbers and that the company had stopped freight pickups.<\/p>\n<p>Those reports arrived just days after Yellow averted a strike from the Teamsters\u2062 amid heated contract negotiations. A pension fund agreed to extend health \u200cbenefits for workers at two Yellow Corp. operating companies, avoiding a planned \u200dwalkout \u2014 and giving Yellow \u201c30\u200d days to pay its bills,\u201d notably a total of $50 million owed to the Central States Health and Welfare Fund.<\/p>\n<p>A Yellow representative said Tuesday that\u200b the\u2062 company previously requested a short-term deferral of the pension contributions plus \u2064interest, but the funds denied that request.<\/p>\n<p>Yellow blamed the nine-month talks \u2063for the demise of the company, saying it \u2062was unable to institute a new business plan to modernize operations and make it more competitive during that time.<\/p>\n<p>The \u200ccompany \u2064said it has asked the U.S. Bankruptcy Court in <a href=\"https:\/\/www.westernjournal.com\/close-associate-biden-family-worked-delaware-us-attorney-hunter-biden-investigation\/\" target=\"_blank\" rel=\"noopener\">Delaware<\/a> for permission\u200d to make payments, including\u2063 for employee wages and benefits, \u2062taxes and certain vendors essential to its businesses.<\/p>\n<p>Yellow has racked up hefty bills over the years. As of late March, it had outstanding debt of about $1.5 billion. Of \u200cthat, $729.2 million \u200dwas owed to the federal government.<\/p>\n<p>In 2020, during the Trump administration,\u2063 the Treasury Department\u200b granted the company\u2062 a $700 million pandemic-era loan on national security \u200dgrounds. The Teamsters supported the $700 million loan when it was first announced.<\/p>\n<p>A congressional probe recently concluded\u200d that\u2062 the Treasury and Defense \u200bdepartments \u201cmade missteps\u201d in the \u200ddecision and said \u2062Yellow\u2019s \u2062\u201cprecarious \u2064financial position at \u200dthe time of the loan, and continued struggles, expose taxpayers to a significant risk of loss.\u201d<\/p>\n<p>As of June 30, Yellow had paid $67 million in cash interest on\u200b the loan,\u200b which is due in 2024, the company said.<\/p>\n<p>The financial chaos \u2062at Yellow \u201cis probably two decades in the\u2062 making,\u201d Stifel research director Bruce Chan said ahead of the filing late last month, pointing to poor management and strategic decisions dating back to the early \u20632000s.<\/p>\n<p>\u201cAt this point, after each party has bailed them out so many \u2062times, \u200bthere is a limited appetite to do that anymore,\u201d Chan\u200b said.<\/p>\n<p style=\"font-style: italic\">The Western Journal has \u200dreviewed this Associated Press story\u200b and may have altered it prior to publication to ensure that it meets our editorial standards.<\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/www.westernjournal.com\/trucking-giant-declares-bankruptcy-company-will-liquidate-entirely\/\">Trucking Giant Declares Bankruptcy, Company Will Liquidate Entirely<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/www.westernjournal.com\">The Western Journal<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>11 bankruptcy allows a company to reorganize and continue operations, Yellow Corp.&#8217;s financial challenges and mounting debt have led to its declaration of bankruptcy. This development has major implications for the U.S. transportation industry and shippers across the country. Notably, it comes only three years after the company received substantial pandemic-related loans from the government.<\/p>\n","protected":false},"author":136,"featured_media":1993441,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[548],"tags":[],"class_list":["post-1993440","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-conservative-news-daily"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1993440","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/136"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1993440"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1993440\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1993441"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1993440"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1993440"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1993440"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}