According to the Teamster on Sunday, cash-strapped US trucking organization Yellow Corp. has stopped functioning and is filing for bankruptcy after failing to restructure and refinance over a billion dollars in debt.
Yellow, previously known as YRC Worldwide, didn’t instantly comment to Reuters.
Yellow stopped a 22,000-strong Teamsters-represented workforce from going on strike earlier this month, and last week it announced it was looking at options to offload its third-party logistics company.
“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,” Teamsters General President Sean M O’Brien mentioned in a statement.
The firm was the third-largest US trucker, specializing in the less-than-truckload section that mixed shipments from various customers in the same trailer.
Its clients consisted of big retailers such as Walmart and Home Depot manufacturers, and Uber Freight, some of whom halted cargo shipments in the concern that those items would be lost or stranded if the firm declared bankruptcy.
According to the company in June, the Teamsters Union was blocking restructuring and modernization efforts, collectively referred to as “One Yellow”, which it said were essential for Yellow’s survival and ability to refinance about $1.3 billion of debt whose deadline is by 2024.
A portion of such debt is a $700 million loan for pandemic relief that Donald Trump’s US government provided in 2020 in exchange for a 30% stake in the company situated in Nashville, Tennessee.
Earlier in the day, the Wall Street Journal wrote about the suspension of the trucking company’s functions, quoting notices sent to its clients and workers. On Friday, the WSJ also stated that the organization has laid off a huge number of nonunion employees.
