New Century Transportation, at least one of its subsidiaries closes its doors
A letter to employees said New Century Transportation closed because its lender had declined to continue funding its operations. (The Trucker file photo)
The Trucker Staff
WESTAMPTON, N.J. — New Century Transportation and at least one of its subsidiaries has closed its doors to business and has filed for Chapter 7 bankruptcy.
A driver notified The Trucker Tuesday that New Century Transportation drivers reporting to work Monday found locked gates.
The company sent a letter to employees Monday via first class mail and e-mail.
“This is to notify you that due to an unforeseeable and dramatic change in business circumstance beyond our control, New Century Transportation Inc. expects it will permanently shut down its operations and all of its facilities, including the facility located at 45 East Park Drive, Westampton, N.J., and will terminate all its employees,” the letter, signed by Terrence M. Gilbert, chief executive officer read.
It was dated June 9, the same day employees found locked gates.
Sources also revealed that at least one of its subsidiaries, Western Freightways, LLC, based in Colorado, closed it's doors. New Century acquired the carrier in 2006. Calls went unanswered at Western Freightways headquarters on Wednesday afternoon.
The letter said New Century Transportation’s lender had “unexpectedly declined to continue funding regular business operations” and after efforts to find additional sources of revenue or a sale of part or all of the company failed, New Century has been left with no options except to file bankruptcy.
The letter also said that to warn employees in advance about the impending bankruptcy was not possible because to do so would have prevented its ability to secure alternative financing.
The letter indicated that some employees might be called back to work by the bankruptcy trustee.
“Although the shutdown and separations from employment are currently expected to be permanent, because the situation is currently in flux there is the potential for some employees to be retained by the Chapter 7 trustees within a short period of time after their separation,” the letter read, adding that those employees would be contacted directly by the trustee.
New Century Transportation was founded in 2000.
According to the latest Federal Motor Carrier Safety Administration data, the carrier had 916 power units and 910 drivers. The company logged 85.7 million miles in 2012, FMCSA data show.
According to New Jersey state spokesperson, New Century Transportation employed about 1,500 persons in New Jersey.
The company’s Facebook page as of Wednesday afternoon was filled with responses telling New Century Transportation drivers where they could find new jobs.
The company only last March launched a new driver recruitment website the carrier said would serve as a platform for truckers to find career opportunities at New Century Transportation.
“If you are an experienced truck driver looking for a great paying job, New Century Transportation has it all,” a release announcing the site had said.
The Trucker staff can be reached to comment on this article at email@example.com.
Find more news and analysis from The Trucker, and share your thoughts, on Facebook.