Reports: Yellow preparing for bankruptcy

Reading Time: < 1 minute
Reports: Yellow preparing for bankruptcy
Yellow is preparing to file for bankruptcy, according to a report in the Wall Street Journal. (Courtesy: Yellow)

OVERLAND PARK, Kan. — U.S. trucking firm Yellow is preparing to file for bankruptcy, the Wall Street Journal reported on Wednesday, July 26, as customers abandon the company amid a cash crunch and union negotiations.

The company could seek bankruptcy court protection as soon as this week, though no decision has been made, the report said, citing people familiar with the matter.

A company spokesman told The Trucker that “Talks with the International Brotherhood of Teamsters are ongoing. As previously stated, in keeping with the fiduciary responsibility of the company’s executives, the company continues to prepare for a range of contingencies.”

On Sunday, July 23,, the third-biggest U.S. trucking company averted a threatened strike by 22,000 Teamsters-represented workers after compensating more than $50 million it owed in worker benefits and pension accruals.

Its customers include large retailers like Walmart and Home Depot, manufacturers and Uber Freight, some of which have paused cargo shipments to the company for fear those goods could be lost or stranded if the carrier goes bankrupt.

In 2020, the Donald Trump led government rescued the company with a $700 million pandemic relief loan in exchange for a 30% stake.

The Trucker Staff contributed to this report.

For over 30 years, the objective of The Trucker editorial team has been to produce content focused on truck drivers that is relevant, objective and engaging. After reading this article, feel free to leave a comment about this article or the topics covered in this article for the author or the other readers to enjoy. Let them know what you think! We always enjoy hearing from our readers.