Jevic Transportation files Chapter 11 bankruptcy papers
Papers show Jevic owes some $4.6 million to its top 20 creditors.
The Trucker Staff
5/21/2008
DELANCO, N.J. — Jevic Transportation late Tuesday filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court in Delaware.
The action came one day after the company, headquartered in Delanco, N.J., announced it was going out of business.
Attempts to reach company officials about the filing were unsuccessful today.
The papers do not list company assets nor total company debt. The filing only shows that Jevic owes $4.6 million to 20 creditors and says the company has between 5,001 and 10,000 total creditors.
The largest debt is $1,530,517.56 to T-Chek Systems Inc. of Eden Prairie, Minn., according to the papers. The company also owes $321,920.42 to Irving Oil Corp of Portsmouth, N.H.
President and CEO David Gorman revealed the decision to cease operations in a letter posted on the company’s Web site.
“The current high fuel costs, economic downturn, increasing insurance costs, and tightening credit markets have made this decision necessary,” Gorman wrote.
Jevic stopped providing pickup service effective Monday, and said it would deliver all freight currently in the system prior to closing, according to the statement.
Additionally, Jevic will continue to provide customer service “through the wind down period” at (888) GO-JEVIC. The Jevic Web site likewise will remain active and will be updated during the period.
Telephone numbers within the Jevic system were answered today with a recorded message saying that the company ceased operations May 19. It gave callers a chance to be forwarded to an automated system to find out more about freight shipments.
“We greatly appreciate the loyalty of our many Jevic customers. It has been our pleasure to provide solutions to your transportation needs over these many years,” Gorman said in the message on the Web site. “We are committed to providing the prompt delivery of your shipments in our system and professional customer service for all your needs during this process.”
The company has 1,185 power units and 1,230 drivers, according to Federal Motor Carrier Safety Administration information.
In another posting addressing personnel questions, the company said that Monday would be last day of work for most employees, though a limited number would be asked to stay on during the wind-down.
“Driver uniforms should be returned to the facility or left in your truck,” said the document. “All other company property should be returned to the facility.“
Company medical benefits also have been terminated.
“Any medical, dental, or vision services performed after May 19th, or any prescriptions filled after that date, among other things, that would have previously been covered by the Jevic plans, will not be eligible for reimbursement or coverage,“ a 'Dear Jevic Employee' letter stated.
The company was founded in 1981. At one time it had facilities in Delanco; Chicago; New England; New York; Charlotte, N.C.; Atlanta; Houston; Cleveland; Cincinnati; and Los Angeles.
The company was known for its unique operating model which handled freight less than conventional carriers, lowering lost and damaged shipments dramatically, while still delivering to the entire 48 states. This “Breakbulk-Free” model, as it came to be known, was the platform for the myriad innovations, which solidified the carrier’s reputation for customer service.
Yellow Corp. bought Jevic in 1999. SCS Transportation Inc., which was spun off from Yellow (YRC Worldwide), sold Jevic to Sun Capital Partners in 2006.