Layoffs and Bankruptcies

California carrier and freight brokerage ceasing operations, blames AB5

A family-owned trucking company and brokerage — California Intermodal Associates Inc. (CIA), headquartered in Commerce, California — is ceasing operations after nearly 25 years, citing the state’s independent contractor law.

CEO Gabriel Chaul said he recently notified customers that he is winding down operations.

“I blame AB5 for the main reasons our company is closing,” Chaul told FreightWaves on Tuesday.

He said all hope that his company would survive faded in March after a federal judge in...

https://www.freightwaves.com/news/california-carrier-and-freight-brokerage-ceasing-operations-blames-ab5

97-year-old Illinois dairy forced into bankruptcy

A 97-year-old family-owned dairy that offers home milk delivery in glass bottles and operates over 40 ice cream and dairy stores in Illinois and Missouri recently filed for Chapter 11 bankruptcy protection.

Oberweis Dairy Inc., headquartered in North Aurora, Illinois, filed its petition Friday in the U.S. Bankruptcy Court for the Northern District of Illinois. 

In its filing, which seeks to reorganize and restructure the company, Oberweis Dairy lists both its assets and liabilities as between $10...

https://www.freightwaves.com/news/97-year-old-illinois-dairy-forced-into-bankruptcy

Former Tony’s Express workers, drivers say mismanagement sank company

Former Tony’s Express truck drivers and other employees say financial mismanagement by new owner John Ohle led to the 70-year-old trucking company’s recent collapse.

Tony’s Express, headquartered in Fontana, California, shut down March 28 after Ohle and others sent a series of text messages starting on March 24, informing workers that the company would not be running trucks the following day “due to a truck insurance issue.”

In texts obtained by FreightWaves, Ohle sent a second message March 25...

https://www.freightwaves.com/news/former-tonys-express-workers-drivers-say-mismanagement-sank-company

Over 1,300 layoffs hit logistics companies across US

Layoffs continue across the freight and logistics industry, with companies in Florida, Georgia, Illinois, Michigan and Texas announcing job reductions and facility closures over the past two weeks.

Universal Logistics

Warren, Michigian-based Universal Logistics is permanently shuttering two of its subsidiaries and laying off a total of 677 employees, according to notices recently filed with the state.

The layoffs are related to Universal-operated entities Logistics Insights Corp. and Universal...

https://www.freightwaves.com/news/over-1300-layoffs-hit-logistics-companies-across-us

California trucking company ceases operations after 19 years

A California trucking company has shuttered operations after 19 years of hauling general freight  throughout the state.

At the time of its closure Monday, Frank Jauregui Trucking of Fontana, had 32 trucks and the same number of drivers, according to the Federal Motor Carrier Safety Administration’s SAFER website.

This is the second Fontana-based carrier to cease operations this week after the formerly family-owned Tony’s Express, a 70-year-old less-than-truckload carrier, closed its doors a year...

https://www.freightwaves.com/news/california-trucking-company-ceases-operations-after-19-years

70-year-old California trucking company, freight brokerage closes abruptly

A 70-year-old California-based less-than-truckload carrier ceased operations Thursday, leaving over 170 truck drivers, warehouse workers and office personnel without jobs, paychecks and paid time off (PTO).

The formerly family-owned company, Tony’s Express, headquartered in Fontana, had 87 drivers and 42 power units at the time of its closure, according to the Federal Motor Carrier Safety Administration’s SAFER website. The company also had around 10 linehaul drivers, who were owner-operators.

Joh...

https://www.freightwaves.com/news/70-year-old-california-trucking-company-freight-brokerage-closes-abruptly

Bankrupt charter airline iAero to cease operations

iAero Airways, the largest passenger charter and cargo carrier in the U.S., will cease operations on Saturday after an unsuccessful effort to restructure the company under bankruptcy protection, President Timothy Rainey informed employees.

Headquartered in Greensboro, North Carolina, iAero operates several narrowbody cargo jets for DHL Express. Other customers include the National Hockey League and U.S. Immigration and Customs Enforcement. The airline’s main flying base is at Miami International...

https://www.freightwaves.com/news/bankrupt-charter-airline-iaero-to-cease-operations

Pride Group’s bankruptcy filing underscores impact of trucking downturn

After Pride Group, one of Canada’s largest trucking and leasing companies, filed for bankruptcy protection last week amid a capacity glut and low rates, President and CEO Sulakhan “Sam” Johal is warning that an “unorganized demise” of the company threatens “the livelihoods of many thousands of families.”

The company was founded by Johal and his brother Jasvir Johal, vice president, in 2010. It operates 50 owned and leased locations across Canada and the U.S., controlling a fleet of 20,000...

https://www.freightwaves.com/news/pride-groups-bankruptcy-filing-underscores-impact-of-trucking-downturn

103-year-old meat producer forced to seek bankruptcy protection

Deli meat producer Freirich Foods claims “temperature abuse” of nearly 1.2 million pounds of corned beef housed at a third-party cold storage facility was the sole reason the 103-year-old company was forced to file for bankruptcy protection.

CEO Paul Bardinas said the company tapped its credit line in January for $7 million as it ramped up production of corned beef, which makes up a large portion of the company’s annual sales, ahead of St. Patrick’s Day.

“Throughout the year, we typically operate...

https://www.freightwaves.com/news/103-year-old-meat-producer-forced-to-seek-bankruptcy-protection

Flock reports layoffs, path to profitability

Friday marked a turn of events for Flock Freight, a provider of shared truckload solutions, as the company decided to reduce its workforce by 54 individuals. The company last reported layoffs in April of 2023. 

This strategic move was aimed at recalibrating the company’s trajectory towards profitability. The positions affected were primarily back office roles, focusing on enhancing automation for Flock’s operational efficiencies.

“The people supporting our customers and carriers and those...

https://www.freightwaves.com/news/flock-reports-layoffs-path-to-profitability

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