Yellow Corp., a trucking company based in Nashville, Tenn., has declared bankruptcy, signaling a significant change in the U.S. transportation industry and affecting shippers nationwide. Despite receiving $700 million in pandemic-era loans from the government just three years ago, Yellow Corp. has struggled financially for years, accumulating growing debt. Industry analysts attribute the company’s downfall to poor management and strategic decisions made over several decades. Former customers and shippers of Yellow Corp. will now have to seek alternatives such as FedEx or ABF Freight, but experts warn that prices may be higher as Yellow Corp. historically offered the cheapest pricing in the industry. Yellow Corp., formerly known as YRC Worldwide Inc., employed 30,000 people across the country and was one of the largest less-than-truckload carriers in the nation. The company’s bankruptcy announcement came after operations were shut down in late July, resulting in layoffs of nonunion employees. The bankruptcy filing follows failed contract negotiations with the Teamsters, where a strike was narrowly averted. Yellow Corp. has accumulated significant debt, with $1.5 billion outstanding as of March, including $729.2 million owed to the federal government. The government loan of $700 million, granted in 2020, is due in September 2024. The company has requested approval from the U.S. Bankruptcy Court in Delaware to make payments for employee wages and benefits, taxes, and essential vendors. This bankruptcy represents the culmination of years of financial struggles and missteps for Yellow Corp., leaving little appetite for further bailouts from stakeholders.
NPR: Yellow Corp., Prominent Trucking Firm, Files for Bankruptcy Following Prolonged Financial Struggles
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