New York/Hong Kong
CNN
—
Yellow Corp., a US trucking company that was once dominant in its field, has filed for bankruptcy as it winds down the 99-year-old business.
The Nashville-based logistics provider announced Sunday it had filed for Chapter 11 relief in the US Bankruptcy Court for the district of Delaware.
“It is with profound disappointment that Yellow announces that it is closing after nearly 100 years in business,” CEO Darren Hawkins said in a statement.
“Today, it is not common for someone to work at one company for 20, 30, or even 40 years, yet many at Yellow did. For generations, Yellow provided hundreds of thousands of Americans with solid, good-paying jobs and fulfilling careers.”
Yellow said it expects to reach an agreement with its creditors, pending approval from the court, that will allow it to pay certain wages and benefits, as well as some obligations to vendors and suppliers.
The filing comes more than a week after the trucking company halted operations, putting 30,000 people out of work. It warned in a lawsuit last month it was at risk of running out of the money it needed to continue to operate.
As it sought a cash infusion that never came, it struggled with slowing business, an unaffordable debt load and a long-running battle with the Teamsters union, which represented 22,000 of its 30,000 employees, including its drivers and most of its dock workers.
— This is a developing story and will be updated.
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