Yellow Corp., a prominent player in the trucking industry, has officially declared bankruptcy after years of grappling with financial difficulties and accumulating debt. This move signifies a significant turning point for the transportation sector in the United States and has wide-ranging implications for shippers across the nation.
The filing for Chapter 11 bankruptcy occurred on Sunday, just three years after Yellow secured $700 million in loans from the federal government during the pandemic. However, the company had been facing financial challenges long before that, with industry experts attributing its struggles to poor management and strategic choices spanning several decades.
Experts anticipate that former Yellow customers and shippers will encounter elevated prices as they transition their business to competitors such as FedEx or ABF Freight. This is noteworthy considering Yellow historically offered some of the lowest price points within the industry.
In a news release issued late Sunday, CEO Darren Hawkins expressed his disappointment, stating, “It is with deep regret that Yellow announces its closure after nearly a century in business. Throughout generations, Yellow has provided hundreds of thousands of Americans with stable, well-paying jobs and meaningful careers.”
Formerly known as YRC Worldwide Inc., Yellow is recognized as one of the largest less-than-truckload carriers in the United States. The company, headquartered in Nashville, Tennessee, boasted a workforce of 30,000 employees spread across the country.
Last week, the Teamsters, the labor union representing Yellow’s 22,000 unionized workers, revealed that the company had ceased operations in late July following extensive layoffs of nonunion personnel.