Posted on 12/09/2019 4:20:13 AM PST by devane617
Celadon, a truckload carrier that grossed $1 billion as recently as 2015, will file for bankruptcy on Dec. 11 or earlier, inside sources told leading industry publication FreightWaves on Dec. 6. It's poised to be the largest truckload bankruptcy in history — and its drivers are already getting slammed.
(Excerpt) Read more at yahoo.com ...
There are THOUSANDS of trucking jobs. And bankruptcy laws protect wages. Non story.
Sounds like poor business practices
I too thought Trucking was staying very busy.
I think we’d have to look at the books here.
Are they over leveraged?
Did they do bad deals that weren’t profitable?
Did they manage their capital well?
Did they splurge on new trucks and equipment without getting a good deal?
Did they overpay for facilities/office/overhead?
If you don’t watch the major corners of the business you will go out of business. Every big company I’ve ever worked for has had these same issues. Bad ideas, bad contracts, bad spending habits, and borrowed thinking it was going to pay off in the future.
Were they bidding low to get business, and couldn’t sustain it?
=
Smells like fake news. I have been hearing for the past several years that there is a deep shortage of licensed drivers for 18 wheelers. Now this? Does not smell right. Mayhaps the company, which has been on the downslide since the Trump presidency started, is failing in some more nefarious way.
Me too. I have friend, well acquaintance that I talk to every once in a while, in OTR trucking. He has mentioned several times that there is a shortage of drivers. That tells me there’s work out there. I wonder if there was something wrong with their business model and organization that they can’t turn a profit in this economy?
I had friends who attempted to get into this market for shipping. Unreliable drivers who took unplanned detours, visited family, had accidents and damaged the truck and food created so many ongoing costs they could not be profitable. They ended up selling off the trucks and took the loss. This was during obama. With a tight job market and less available drivers, I’d hate to imagine who’d be driving a freelance truck.
Smells like fake news. I have been hearing for the past several years that there is a deep shortage of licensed drivers for 18 wheelers. Now this? Does not smell right. Mayhaps the company, which has been on the downslide since the Trump presidency started, is failing in some more nefarious way.
AAAAANNNNDDD - HERE YOU GO>>>>
Feds charge former Celadon executives with securities fraud
https://www.indystar.com/story/news/crime/2019/12/05/former-celadon-trucking-executives-charged-fraud/2618464001/
“Goods” not “food”, darn you, Spell Cheeky...
Yep...
“More recent numbers are difficult to come by because Celadon had to restate its financial reporting after mismanagement and a complex accounting scandal that ultimately resulted in former executives being indicted on securities fraud charges yesterday, December 5.”
MORE OF THE SAME:
employee reviews
https://www.indeed.com/cmp/Celadon-Trucking/reviews
Like this: Loved Celadon with all of my heart. Sad to see the financial trouble we are in. The future does not look bright. Please know that the damage was done years ago by greedy executives that are now going to prison. It is not reflective of the current employees and execs that truly loved our drivers and Celadon. We really tried. Heartbreaking.
NOTE****
This all occured under Obama.
I found the same thing. They stepped on their own toes.
A combination of dishonest management and improper accounting put the company in jepoardy. In addition, US manufacturing slowed in the last year and reduced the demand for truck and rail carriage.
Trucking has experienced YOY declines in each of the past 12 months. Spot pricing is declining which is started be reflected in contract pricing. Trade volumes are down, the manufactiuring sector has been in decline since December, oil and gas sector is reducing CAPEX, and too many new trucks were ordered in 2018.
If they liquidate their assets a part of it could be to let every driver who is stranded take possession of the truck they are driving.
In 2018 there was an over a year wait to buy a new truck.
Never let a dumb robot have the final word. Always check the spell checker. Before you hit "Post" hit "Preview" to see what you will be posting. ;-)
Freight levels are about 5% lower this year than last.
Celadon was done in by crooked execs.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.