Posted on 08/07/2023 5:02:15 AM PDT by Republicans 2016 2020
U.S. trucking firm Yellow Corp (YELL.O) filed for Chapter 11 bankruptcy protection on Sunday and said it would wind down, after struggling with a mounting debt load and following tense contract negotiations with the Teamsters Union.
The nearly 100-year-old company's bankruptcy filing in a Delaware court estimated assets and liabilities of $1 billion to $10 billion, with more than 100,000 creditors.
The collapse of Yellow, formerly called YRC Worldwide, puts about 30,000 workers at risk when the freight industry is already grappling with a slump in volumes.
(Excerpt) Read more at reuters.com ...
File Chapter 7, reorganize, ditch the union, move to a red state with right to work, and start over.
Inventors are looking to pick them up now, it’s not a done deal yet.
I’ve used YRC since Roadway got bought out to ship stuff long distances and I’m not in a hurry to get it there. They have a good business model, or at least I thought they did, by usually waiting until a trailer was full to ship rather than a scheduled ship if it’s a full load or not.
They were always the lowest priced carrier I had quoted, and the longest delivery times. I guess too many people have gone to the Just In Time method of inventory and freight logistics for their business model to make it.
That, or just plain poor management. (being stuck with the Teamsters isn’t helping matters at all either I imagine)
They can change their name to Red Yellow.
Or maybe Red Green.
From my understanding, YRC had an abysmal CSR and their debt to income ratio has been unsustainable for a number of years. Their collapse has been a long, slow process, aided by numerous cash infusions (good money after bad) and industry efforts to shore them up - my company alone bought nearly 40% of their brick and mortar locations across the country.
The Yellow-Roadway consolidation into YRC was unusual because the smaller company (Yellow) acquired the larger one (Roadway). The debt load hanging over the merged company was enormous, and once interest rates started rising rapidly it was only a matter of time before the whole thing collapsed.
Used um once. Cost me a customer and hours in court suing them.
Freight was sent to a closed site. By appointment only. Told yellow this. Paid extra to get an ETA call so someone would be there to accept and unload. No one ever called and we where never even given a day they might show up. Driver managed to call me. I called my contact who said they never called. I relay this info to the driver and said the site contact would be there in 10 minutes. He hung up on me.
Site contact called to say the truck was leaving and the freight was pushed off the back of the truck on to the parking lot. It was completely destroyed..
Ya it’s about time that company died.
Gee, if they could only of afforded the billions to buy electric trucks, thus saving on their fuel bill…… 🤣🤣🤣🤣🤣
Yellow management, whether by desperation or hubris, tried to corner the LTL market through mergers/acquisitions (Roadway, NewPenn, USF ). The debt load from the Roadway acquisition alone was north of %1,000,000,000. Add in the fact they were operating under union contracts that were written and agreed to by people in the 70’s and 80’s that knew damned well they would be long dead and gone by the time to pay the piper came around.
$ not % 😆
I always found annoying their logo, which was the word YELLOW on am orange background.
I wonder if this will affect those generous union pensions.
I’ve booked thousands of trucks over the years and have not once used Yellow. Must never have offered “reefers”.
I remember the year some enterprising salesman at G.I Trucking secured the Palmer Chocolate Company account. G.I did not have refrigerated trailers, and the Easter candy did not fare well in Phoenix. Think: mutant chocolate bunnies.
In a Delaware court.
That’s interesting.
They also bought Holland Truck Line which was profitable and then killed it also.
Holland is/was a part of USF, didn’t think I needed to break it down that much.
Ahahahahaha!! I truly laughed my a** off at that. Red Green was an all-time favorite show for me.
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