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US trucking firm Yellow shuts ops, to file for bankruptcy - Teamsters

Published 07/30/2023, 05:01 PM
Updated 07/31/2023, 06:35 PM
© Reuters.

(Reuters) -Cash-strapped U.S. trucking company Yellow Corp has ceased operations and is filing for bankruptcy after failing to reorganize and refinance over a billion dollars in debt, the Teamsters Union said on Sunday.

Yellow, formerly called YRC Worldwide (NASDAQ:YELL), did not respond to a Reuters request for comment.

Earlier this month, Yellow averted a strike by 22,000 Teamsters-represented workers and last week it said it was exploring opportunities to divest its third-party logistics company.

"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," Teamsters General President Sean M O'Brien said.

The company was the third-biggest U.S. trucker specializing in the less-than-truckload segment that combines shipments from different customers in the same trailer.

Its customers included large retailers like Walmart (NYSE:WMT) and Home Depot (NYSE:HD), manufacturers and Uber (NYSE:UBER) Freight, some of which paused cargo shipments to the company for fear those goods could be lost or stranded if the carrier went bankrupt.

The company said in June that the Teamsters Union was blocking restructuring and modernization efforts, collectively known as "One Yellow", which it said were critical for Yellow's survival and ability to refinance about $1.3 billion of debt due to be repaid by 2024.

Part of that debt is a $700 million pandemic relief loan provided in 2020 by the Donald Trump-led U.S. government in exchange for a 30% stake in the Nashville, Tennessee-based company.

© Reuters. FILE PHOTO: Two freight trucks are driven on the Fisher freeway in Detroit, Michigan, U.S. March 27, 2009. REUTERS/Rebecca Cook/File Photo

The Wall Street Journal reported the closure of the trucking firm's operations citing notices sent to customers and employees. It reporte on Friday that the company has laid off a large number of non-union workers.

On Monday, another 128 union members at YRC Freight Canada, a unit of Yellow, were told not to report for work.

Latest comments

Great to see more market share potentially open up for smaller, non unionized, innovative companies.
Bad management is usually at fault, 30k without a job is gonna hurt
Unions stopped being useful over a century ago. They have no place in today’s market economy.
People are so naive, especially Americans. They never accept their mistake, rather try to glorify it. He increased the minimum labor per hour to $15.00 at a time when companies were already suffering because of COVID. Numerous small companies just vanished under debt. Yell suffers from that single action of dumb Biden. Accept it or not the USA is doomed. First Bush and then Biden both had IQs below 87.
It's all dueto Biden Gov's decisions and bad strategies to takle COVID-19 besides other factors. I am surprised no one is blaiming him. Yes, do vote for him for reelection in 2024 and finish  destroying US economy.
Hilarious! Will you be taking this act on the road? Where can I buy tickets?
"Part of that debt is a $700 million pandemic relief loan provided in 2020 by the Donald Trump-led U.S. government in exchange for a 30% stake in the Nashville, Tennessee-based company."  -- The Donald is involved with another bankruptcy, go figure
Do you think these numbers will show up in Old Joe's next jobs report?
It's what Unions are good at.
so it's the unions' fault that the company ran up $1b debt?
My shipping rates have exploded with Fed Ex  Ground after Covid lockdown  , this  will on make them go higher  .  Fed Government  32 trillion in debt . Federal Reserve  8 trillion  in debt . Our Nation  is Bankrupt Hello
Who cares. Keep buying stocks
Fed Ex  Ground   shipping rates  have sky rocketed . doubled in 3 years . on the surcharges .  let the economy crash  ... Fed government  32 trillion in debt   . horse is out of the barn
UPS prices have tripled in 3 years too..That's what happens when you pay UPS drivers $50 an hour
Yellow following the coal company play book. Fall way behind on paying into workers contracted benefits of health care and pensions......declare bankruptcy......divest assets and resume business free of legacy obligations .  Its the American way. ...... work over the working class while the executives get away unscathed with their bloated retirements , bonuses ,healthcare  and keep their jobs working over workers driving a different color truck
Well being in the trucking business, more for us know!
Cost of worker unions can sometimes be too high for the workers themselves - alsa they dont get it. I am sure its the workers union (the leader of which must have got their pockets full, and wont care about thr workers) that caused this
I feel sorry for the workers
Thanks Teamsters. 22 k now out of work.
Bankruptcy is Bullish. Right?
you are an idiot, right?
 Ronald said Yes ..... I am an idiot.
Bidenomics
Yes, particularly the pro-union part. Though, in the case, Yellow management was also at fault.
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