Layoffs and Bankruptcies

Yellow creditors’ battle over $550M-plus carcass heats up

Yellow Corp. and some of its creditors remain at odds over a final bankruptcy plan for the liquidation and distribution of the estate’s remaining assets, which now include $550 million in cash. The bankrupt less-than-truckload carrier’s unsecured creditors told a federal bankruptcy court in Delaware on Monday that it would submit its own plan in the coming days.

Counsel for Yellow (OTC: YELLQ) said it didn’t have the votes to proceed on its previously proposed plan but that it was still hopeful...

https://www.freightwaves.com/news/yellow-creditors-battle-over-550m-plus-carcass-heats-up

US Postal Service invites DOGE to fix structural problems

The U.S. Postal Service has authorized Elon Musk’s Department of Government Efficiency to help eliminate red tape hurting financial and operational performance in a move Democrats decried but some postal workers say could be beneficial.

It also gave concrete figures on previously announced force reductions, saying it expects to eliminate 10,000 jobs through a voluntary early retirement program. Meanwhile, postal workers and community activists this week plan to protest Trump administration...

https://www.freightwaves.com/news/us-postal-service-invites-doge-to-fix-structural-problems

Reports: 51-year-old Michigan trucking company halts operations

Equity Transportation Co. Inc., a Walker, Michigan-based trucking company, has ceased operations, marking another casualty of the freight market. Multiple sources close to the company confirmed with FreightWaves that the company has shut down, letting go of all of its drivers and halting operations of its vehicles. 

According to reports on Facebook, drivers are still waiting to hear about their final wages, while some have dealt with recent bounced checks.

Equity Transportation has yet to make a...

https://www.freightwaves.com/news/reports-51-year-old-michigan-trucking-company-halts-operations

2 major logistics firms plan layoffs in US, Europe

Geodis Logistics is closing a distribution center and laying off 426 workers in Monroe Township, New Jersey.

“The GEODIS facility in Monroe Township, New Jersey, will close in July 2025 due to a key customer moving operations to a GEODIS facility in Eastern Pennsylvania,” 

Lauren McKirgan, a company spokeswoman, told FreightWaves in an email.

Geodis did not disclose the name of that customer. The Monroe Township distribution center’s address is listed as 1 Costco Drive.

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https://www.freightwaves.com/news/2-major-logistics-firms-plan-layoffs-in-us-europe

Illinois Construction Trucking Company Archivos Capítulo 11 Bancarrota

Franco Hauling LLC, una empresa de transporte de construcción de propiedad de veteranos con discapacidad de servicio con sede en Bensenville, Illinois, ha solicitado la protección de bancarrota del Capítulo 11 en el Distrito Norte de Illinois. Según la presentación del Tribunal de Bancarrota de 42...

https://fullavantenews.com/illinois-construction-trucking-company-archivos-capitulo-11-bancarrota/?lang=es

Illinois construction trucking company files Chapter 11 bankruptcy

Franco Hauling LLC, a service-disabled veteran-owned construction hauling company based in Bensenville, Illinois, has filed for Chapter 11 bankruptcy protection in the Northern District of Illinois.

According to the 42-page bankruptcy court filing obtained by FreightWaves, the business, owned by July Franco, has up to 49 estimated creditors.  Franco Hauling has estimated assets of between $50,000 and $100,000, and the company has $500,000 to $1 million in liabilities.

Top creditors with the...

https://www.freightwaves.com/news/illinois-construction-trucking-company-files-chapter-11-bankruptcy

Layoffs hit over 14,300 workers tied to freight sectors in US, Canada, Mexico

A massive wave of layoffs, closures and furloughs has hit workers and companies tied to the manufacturing, distribution and freight sectors in the U.S., Canada and Mexico. 

Since Jan. 20, there have been 14,357 job cuts, according to media reports and Worker Adjustment and Retraining Notification (WARN) Act notices.

Food processors and distributors hit hard

Among the companies facing layoffs this month, major food processors and distributors Harvest Sherwood Food Distributors, Cargill Inc.,...

https://www.freightwaves.com/news/layoffs-hit-over-14300-workers-tied-to-freight-sectors-in-us-canada-mexico

Amarillo Settles advierte reclamos de empleados de no unión por $ 12.3 millones

Yellow Corp. reveló en una audiencia de enero que tenía llegar a un acuerdo con los empleados de no unión En cuanto a la falta de notificación de 60 días antes de los despidos masivos en 2023. Las presentaciones del viernes en un tribunal de bancarrota federal en Delaware mostraron los montos de la...

https://fullavantenews.com/amarillo-settles-advierte-reclamos-de-empleados-de-no-union-por-12-3-millones/?lang=es

Yellow settles WARN claims from nonunion employees for $12.3M

Yellow Corp. revealed at a January hearing that it had come to terms with nonunion employees regarding a failure to provide 60 days’ notice ahead of mass layoffs in 2023. Friday filings in a federal bankruptcy court in Delaware showed the settlement amounts.

The defunct less-than-truckload carrier has settled Worker Adjustment and Retraining Notification Act claims from two separate plaintiff classes for a total of $12.3 million.

The Moore class, a group of approximately 3,200 nonunion employees...

https://www.freightwaves.com/news/yellow-settles-warn-claims-from-nonunion-employees-for-12-3m

Teamsters’ WARN claims fall short in federal bankruptcy court

A federal bankruptcy court in Delaware found that Yellow Corp. is not liable on claims from roughly 22,000 union employees for failure to provide 60 days’ notice ahead of mass layoffs in the summer of 2023. It said the company was a “liquidating fiduciary” winding down affairs and not an employer at the time the layoffs were ordered, releasing it from liability.

Yellow (OTC: YELLQ) determined on July 26, 2023 that it had no viable path forward and enacted a plan to shut down operations. It...

https://www.freightwaves.com/news/teamsters-warn-claims-fall-short-in-federal-bankruptcy-court

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