Trucking firm Yellow files for bankruptcy protection after loading up on debt

U.S. trucking steadfast Yellow filed for Chapter 11 bankruptcy extortion connected Sunday, burdened with a dense indebtedness load aft a bid of mergers and pursuing tense declaration negotiations with the Teamsters Union.

The bankruptcy filing successful a Delaware tribunal lists estimated assets and liabilities of $1 cardinal to $10 cardinal and creditors of much than 100,000.

"It is with profound disappointment that Yellow announces that it is closing aft astir 100 years successful business," Yellow's CEO, Darren Hawkins, said successful a statement.

Yellow, formerly called YRC Worldwide, is 1 of the largest U.S. trucking companies and a ascendant subordinate successful the "less-than-truckload" conception that hauls cargo for aggregate customers connected a azygous truck.

Customers see ample retailers specified arsenic Walmart and Home Depot, manufacturers and Uber Freight. Some person paused shipments to the institution connected fears they could beryllium mislaid oregon stranded if the bearer went bankrupt.

Yellow's bankruptcy filing comes aft Teamsters Union said late past period that it was notified that the institution was ceasing operations.

The institution has been successful contentious negotiations with the national implicit an interior restructuring inaugural meant to boost efficiency.

It recently averted a onslaught by 22,000 Teamsters-represented workers.

Before resolving the onslaught threat, Yellow sued the national successful Kansas national court, seeking to artifact a onslaught and saying that union's refusal to negociate had pushed the institution to the "brink of extinction."

The company's struggles compounded with a steep driblet successful ecommerce shipments from aboriginal pandemic highs and an industrywide diminution successful freight volumes implicit the past year.

Yellow, saddled with liabilities from its purchases of Roadway successful 2003 and USF successful 2005, reported full indebtedness of $1.5 cardinal past year, according to Refinitiv data.

U.S. taxpayers look imaginable losses if the institution does not repay a $700 million-loan the medication of erstwhile President Donald Trump issued to bail retired the long-troubled and poorly managed trucking steadfast successful 2020 nether a pandemic alleviation program.