Yellow, one of America’s largest and oldest trucking companies, closed Sunday after succumbing to heavy debt and a long-running dispute with the International Teamsters Brotherhood (IBT), according to The Wall Street Journal (WSJ). bottom.
The 99-year-old company owned more than 12,000 trucks for Walmart, Amazon, and many other small businesses, and relied on an under-truckload or LTL shipping model to move freight across the country. WSJ reported. report. The LTL model allows customers to transport any amount of freight to allow for smaller shipments. Yellow Corporation employs approximately 30,000 people, including 22,000 IBT employees. The bankruptcy would be the largest in the U.S. trucking industry in terms of revenues and jobs, according to the Times. (RELATED: UPS Avoids Massive Strikes in New Deal with Unions)
MIAMI – July 8: A Yellow Corporation truck is seen near the terminal (photo credit: Joe Raedle/Getty Images)
Yellow’s financial woes have worsened this year due to lower transportation demand and lower remittance rates.cash holdings It fell to about $100 million in June From $235 million in December, according to the WSJ.
Yellow reportedly owed about $1.5 billion as of March, including about $729.2 million to the federal government. luck. In 2020 under the Trump administration, the Treasury Department gave Yellow a $700 million pandemic-era loan as part of its COVID-19 relief plan, citing national security reasons, the WSJ reported.
special Congressional Oversight Report Recently, the U.S. Treasury Department concluded that “an error was made” in the decision to extend the loan to Yellow, stating that Yellow’s “precarious financial situation at the time of the loan and its ongoing predicament left taxpayers at significant risk of loss.” are exposed to,” he added.
According to the report, the company is preparing to file for bankruptcy and is in talks to sell all or part of its business.
