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Miami Herald
17-04-2025
- Business
- Miami Herald
Major trucking company to shut down, no bankruptcy plans
Severe economic issues in the trucking industry over the last three years, a period which has been known as the Great Freight Recession, have forced companies to downsize operations, close down their businesses, and in some cases file for bankruptcy. The most common problems shipping companies have encountered are reduced shipping demand, lower freight rates, and rising costs of labor, fuel, and insurance. Don't miss the move: Subscribe to TheStreet's free daily newsletter A flurry of trucking companies filed for Chapter 11 protection on April 7, including Dedham, Mass.-based Best Choice Trucking LLC, which filed for bankruptcy to restructure its debts, which include a large amount of vehicle financing. Related: Another struggling trucking company files Chapter 11 bankruptcy Another freight transportation and logistics company, C&C Freight Network, also on April 7 filed for Chapter 11 bankruptcy to restructure its debts, facing economic problems. The debtor indicated that no funds would be available to distribute to unsecured creditors. Also, small trucking firm, Memphis, Tenn.-based Best Logistics Inc., filed for Chapter 11 bankruptcy on April 7 under a Subchapter V petition in the U.S. Bankruptcy Court for the Western District of Tennessee. In some cases, trucking companies have shut down but did not file for bankruptcy. Financial difficulties resulted in huge transportation company LTI Trucking, with about 250 drivers, shutting down its operations on April 2, but it had not filed for bankruptcy at last check. The Madison, Ill., trucking company, which was established in 2005, had 300 tractors and 575 trailers. The company was a major shipper of products for AB InBev, KraftHeinz, Vlasic, Hershey's, Nestle, Tyson, Hillshire Farm, Kroger, Hostess, and Sara Lee. Finally, Florida-based trucking company Davis Express Inc. revealed on its Facebook page that the company will shut down its business permanently after making its final deliveries on April 23 and returning all trucks to its terminal by April 30. Related: Another huge auto parts brand files for Chapter 11 bankruptcy "The last few years have been very challenging for refrigerated trucking as costs continue to rise while rates remain flat or have decreased," the company's President and Owner, Jimmy Davis, said in the Facebook post on April 16. More bankruptcy: Popular breakfast dining chain files for Chapter 11 bankruptcyHuge national car wash chain files Chapter 11 bankruptcyTroubled trucking company files for Chapter 11 bankruptcy "Although the company has been unprofitable the past several years, we are not broke, bankrupt, nor do we have any cash flow problems. There are sufficient funds to pay out all employees, vendors, and creditors timely," Davis said. The owner of the company said that he is ready to retire and does not wish to wait any longer for the business to turn around or to find a buyer. The founder's family is no longer interested in continuing the business due to industry challenges, he said. All employees will be paid every Friday and receive benefits through their June 15 pay period, he said. Davis Express has 160 trucks and 140 drivers, according to the Federal Motor Carrier Safety Administration SAFER web page. It will lay off its drivers, but will continue to employ mechanics and operate its shop while the company takes equipment out of service and sells assets. The family-run business filed a 60-day Worker Adjustment and Retraining Notification notice stating that 146 employees will be laid off on June 15, 2025, and the remaining 17 will be laid off on Aug. 31, 2025. The workers include 117 drivers, 35 office employees, and 11 mechanics. The Starke, Fla., company, which has operated for 44 years, has been unprofitable since early 2023, and Davis said he doesn't see any signs of improvement in 2025. Related: Struggling fashion accessory brand files Chapter 11 bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
09-04-2025
- Business
- Yahoo
Trucking and logistics bankruptcies reported across US
Two trucking companies and a 3PL recently filed for Chapter 11 bankruptcy protection in separate cases. C & C Freight Network, Best Choice Trucking and Best Logistics Inc. cited everything from mounting debt to payroll taxes as reasons for the bankruptcy petitions. Dedham, Massachusetts-based Best Choice Trucking LLC, which has nine drivers and nine power units, filed its petition Monday in the U.S. Bankruptcy Court for the District of Massachusetts. The petition lists Ulysses Fabricio as president of the company, which hauls full-truckload, last-mile and hazmat freight. Best Choice Trucking listed its assets and liabilities as between $1 million and $10 million. The company, which seeks to reorganize, has up to 49 creditors and maintains that funds will be available for unsecured creditors once it pays administrative fees. Some of the company's largest listed creditors include Digital Federal Credit Union for $1.6 million; Trans Lease Inc. for a 2023 Peterbilt 389 tractor ($386,585); and the U.S. Small Business Administration ($371,017). Best Choice Trucking's trucks had been inspected eight times, with no vehicles placed out of service in a 24-month period, according to the Federal Motor Carrier Safety Administration's SAFER website. The carrier's drivers had been inspected 17 times over the same 24-month period, with three drivers being placed out of service, resulting in a 17.6% out-of-service rate. The national average is around 6.7%, according to FMCSA. C & C Freight Network, a Braselton, Georgia-based trucking company with seven drivers and trucks, filed for Chapter 11 bankruptcy protection on Monday in the U.S. Bankruptcy Court for the Northern District of Georgia. In its petition, C & C Freight Network listed its assets and liabilities as between $1 million and $10 million. The company, which seeks to reorganize, states that it has up to 49 creditors but said no funds will be available for unsecured creditors once it pays administrative fees. C & C Freight Network's largest creditor is the Small Business Administration for a COVID-19 economic injury disaster loan for $161,425. Other creditors include Headway Capital LLC for equipment ($87,945); Fora Financial Advance LLC for equipment and inventory ($72,939); MCA Servicing Co. ($63,842); Mint Funding Inc. ($60,364); and BMO Harris Bank for a 2020 Volvo tractor ($56,545). C & C Freight Network's trucks had been inspected eight times, and three had been placed out of service in a 24-month period, resulting in a 37.5% out-of-service rate. This is higher than the industry's national average of around 22.3%, according to the FMCSA. The carrier's drivers had been inspected 23 times over the same 24-month period with two drivers being placed out of service, resulting in an 8.7% out-of-service rate. That compares with the national average of around 6.7%. C & C Freight Network's common carrier authority was granted in April 2016. The bankruptcy petition lists Charles Alderman as manager of C & C Freight Network, which hauls general freight. Memphis, Tennessee-based Best Logistics Inc. filed for bankruptcy protection in the Western District of Tennessee on Monday. The 3PL listed assets of up to $50,000 and liabilities of between $50,000 to $100,000. The company listed 49 creditors and maintains that funds will be available for unsecured creditors once it pays administrative fees. Creditors include the IRS for payroll taxes, along with the city of Memphis and Shelby County, Tennessee. The petition lists Phyllis Brown as president of Best Logistics. The post Trucking and logistics bankruptcies reported across US appeared first on FreightWaves.
