Saturday, April 20, 2024

Teamsters say Yellow Corp. is ceasing operations, filing for bankruptcy

by Associated Press

Troubled trucking company Yellow Corp. is shutting down and filing for bankruptcy, the Teamsters said Monday.

An official backruptcy filing is expected any day for Yellow, after years of financial struggles and growing debt. Its impending liquidation marks a significant shift for the U.S. transportation industry and shippers nationwide.

“Today’s news is unfortunate 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,” said Teamsters General President Sean M. O’Brien.

The company’s collapse arrives just three years after Yellow, formerly known as YRC Worldwide, Inc., received $700 million in pandemic-era loans from the federal government. But the company was in financial trouble long before that — with industry analysts pointing to poor management and strategic decisions dating back decades.

Former Yellow customers and shippers will face higher prices as they take their business to competitors, including FedEx or ABF Freight, experts say — noting that Yellow historically offered the cheapest price points in the industry.

Yellow is one of the nation’s largest less-than-truckload carriers. The Nashville, Tennessee-based company had 30,000 employees across the country as of earlier this year.

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