via silverdoctors
From the Wall Street Journal:
Celadon Group Inc., one of North America’s largest truckload carriers, said Monday it filed for chapter 11 bankruptcy protection and will wind down its business operations.
The Indianapolis-based firm has been trying to turn around its business in the wake of an accounting scandal that triggered a management overhaul as the company was seeking to recover from financial problems.
“We have diligently explored all possible options to restructure Celadon and keep business operations ongoing; however, a number of legacy and market headwinds made this impossible to achieve,” Chief Executive Officer Paul Svindland said in the statement.
The company had about 3,800 employees at the time of the shutdown, including approximately 2,500 drivers, and serves corporate customers including Lowe’s Co s., Philip Morris International Inc., Walmart Inc., Honda Motor Co. and Procter & Gamble Co. , Celadon said in a bankruptcy court filing.
Celadon owes $293 million in long-term liabilities, according to a sworn declaration filed by the company’s treasurer, Kathryn Wouters. She said Celadon owes $138 million in long-term debt, $115 million on capital leases, $7 million in deferred taxes and $33 million to the Justice Department stemming from a federal probe into the company’s accounting. There are also $98 million in current liabilities, Ms. Wouters said.
Apparently, this was and presumably is causing a huge mess as far as logistics go.
There were several reports of drivers being stranded with their vehicles.
Sometimes, they were left without fuel, or their fuel cards were cut off, and other times there have been drivers who were with their rigs that were inoperable, broken down on the side of the road.
From WTHR:
Many drivers are now reportedly having communication issues with bosses.
“They were not able to get a hold of fleet managers. They have no word from their bosses, and it’s making everybody panic,” said Amy Mills, Isabella’s wife.
Amy says they’re trying to connect drivers with financial assistance and jobs through a Facebook group called Teddy’s Trucker’s Association.
“We’ve been working around the clock making sure these drivers can get home,” said Amy.
The Millses say it’s been tough on drivers.
“Many are dropping their trucks off at truck stops and going home,” said Amy.
Due to gas cards being inactive, it can cost a driver anywhere from about $400 to $700 to fill up. Depending on the truck, one full tank of gas can last for about 800 to 1,600 miles. That money will have to come out of driver’s pockets.
Help for drivers
Offers of help are pouring in for the thousands of truck drivers affected by Celadon’s bankruptcy filing.From job offers to bus tickets for stranded drivers, other trucking companies are offering their assistance through social media.
Looking for a quick statement, or anything, from the company, on the company’s website, results in an error:
The website, at least the public facing one, appears to be taken down.