Current:Home > NewsYellow trucking company that got $700 million pandemic bailout files for bankruptcy-InfoLens
Yellow trucking company that got $700 million pandemic bailout files for bankruptcy
View Date:2024-12-23 16:18:25
Yellow, a nearly 100-year-old trucking company that received a $700 million bailout during the pandemic, has filed for bankruptcy amid fruitless union negotiations and over $1 billion in debt.
The Chapter 11 protection, filed in U.S. Bankruptcy Court in Delaware on Sunday, comes a week after the beleaguered trucking company — once one of the U.S.' largest transporters of goods — ceased operations. The company's shutdown will eliminate 30,000 jobs, 22,000 of which are held by members of the International Brotherhood of Teamsters.
"It is with profound disappointment that Yellow announces that it is closing after nearly 100 years in business," Chief Executive Darren Hawkins said in a statement. "This is a sad day for workers and the American freight industry."
The company received a $700 million government loan during the pandemic, as part of the COVID-19 relief program in 2020. Even so, its financial challenges continued to snowball, leading it to accumulate more than $1 billion in debt.
"Yellow has historically proven that it could not manage itself despite billions of dollars in worker concessions and hundreds of millions in bailout funding from the federal government," said Teamsters General President Sean M. O'Brien in statement last week.
- Yellow trucking company declares bankruptcy
- Yellow Corp. trucking company shuts down, 30K out of work
- Yellow is shutting down after 99 years. Here's what to know
"Deliberately destructive tactics"
Late last month, the company laid off a large swath of workers in anticipation of bankruptcy.
The company's leaders blamed the closure, in part, on contentious dealings with its union and the rise of non-union competitors.
"We faced nine months of union intransigence, bullying and deliberately destructive tactics," Hawkins said in the statement.
He added, "IBT leadership was able to halt our business plan, literally driving our company out of business, despite every effort to work with them."
- In:
- Bankruptcy
- Pandemic
- Chapter 11 Bankruptcy
veryGood! (18)
Related
- Steelers shoot for the moon ball, but will offense hold up or wilt in brutal final stretch?
- It's cozy gaming season! Video game updates you may have missed, including Stardew Valley
- Steelers' Mike Tomlin shuts down Jayden Daniels Lamar comparison: 'That's Mr. Jackson'
- Jennifer Lopez Turns Wicked Premiere Into Family Outing With 16-Year-Old Emme
- Republican Dan Newhouse wins reelection to US House in Washington
- The Stanley x LoveShackFancy Collaboration That Sold Out in Minutes Is Back for Part 2—Don’t Miss Out!
- The NBA Cup is here. We ranked the best group stage games each night
- Stock market today: Asian shares mostly decline, shrugging off Wall Street’s overnight rally
- Gossip Girl Actress Chanel Banks Reported Missing After Vanishing in California
- Judge extends the time to indict the driver accused of killing Johnny Gaudreau and his brother
Ranking
- Trump's election has women swearing off sex with men. It's called the 4B movement.
- It's cozy gaming season! Video game updates you may have missed, including Stardew Valley
- Texas’ 90,000 DACA recipients can sign up for Affordable Care Act coverage — for now
- Sam LaPorta injury update: Lions TE injures shoulder, 'might miss' Week 11
- New Orleans marks with parade the 64th anniversary of 4 little girls integrating city schools
- Celtics' Jaylen Brown calls Bucks' Giannis Antetokounmpo a 'child' over fake handshake
- School workers accused of giving special needs student with digestive issue hot Takis, other abuse
- Taylor Swift Becomes Auntie Tay In Sweet Photo With Fellow Chiefs WAG Chariah Gordon's Daughter
Recommendation
-
The Best Gifts for Men – That He Won’t Want to Return
-
Mike Tyson emerges as heavyweight champ among product pitchmen before Jake Paul fight
-
Apologetic rapper Tekashi 6ix9ine gets 45 days in prison for probation violations
-
Brian Austin Green Shares Message to Sharna Burgess Amid Ex Megan Fox's Baby News
-
Man found dead in tanning bed at Indianapolis Planet Fitness; family wants stricter policies
-
Pitchfork Music Festival to find new home after ending 19-year run in Chicago
-
NBC's hospital sitcom 'St. Denis Medical' might heal you with laughter: Review
-
Veterans Day restaurant deals 2024: More than 80 discounts, including free meals