Consolidated Freightways Corp., one of the nation’s largest trucking firms, is shutting down its U.S. operations immediately and moving to liquidate the business, according to the Los Angeles Times.
Headquartered in Vancouver, Wash., Consolidated has been struggling financially over the past few years, and the 73-year-old company had been in discussions with lenders to obtain additional financing, but those plans fell through after the one of the company’s surety bondholders cancelled coverage associated with Consolidated’s self-insurance programs for workers’ compensation and vehicular casualty. A spokesperson said the cancellation caused another gap up to $35 million. That coupled with a troubled economy and competition from major rivals and smaller, independent companies lead to Consolidated’s downfall.
The company said it would file for Chapter 11 bankruptcy protection, allowing management to dispose of the company more quickly. The decision will eliminate approximately 15,500 jobs.
Operations of the CF AirFreight and Canadian Freightways Ltd. subsidiaries are continuing, according to the company.
Was this article valuable?
Here are more articles you may enjoy.