Celadon Group, Inc. (CGIP), a top 50 US truckload carrier with around $1B revenue, filed for bankruptcy under Chapter 11 at 00:01 this morning, leaving 3-4000 employees out of work, and #truckdrivers stranded thousands of miles from home.
Social media channels were active this past week with speculation of #bankruptcy and operational #shutdown, including drivers stranded with inactive fuel cards over the weekend. Several #truckingcompanies offered free bus tickets home to stranded Celadon drivers, also encouraging them to apply for jobs (truck drivers are in high demand). Truckers in related social media groups offered rides and meals to #strandeddrivers.
Celadon had settled with the SEC and DOJ for $42.2M in April 2019, for an accounting scheme to cover up a $60M loss on equipment (semis), and was subsequently delisted from the New York Stock Exchange. 2 more top executives were indicted by the SEC for securities fraud last week, fueling ongoing speculation about when (not if), the company would file under Chapter 11. The publicly listed company\’s stock has been falling since it\’s 2015 high at over $27, to $7.50 in 2016. A strong market helped it limp through 2017/18 in the mostly sub $2 range, until today\’s bankruptcy at $0.41.
Among its subsidiary companies #Osborn Transportation, Servicios de Transportacion #Jaguar, and #Taylor Express, Canadian #Hyndman Transport will reportedly cease operations,
Wishing beset of luck to these drivers getting home, and hoping all former employees a speedy resolution to their pay and good luck finding a job as we approach the holiday season.
Wall Street Journal: Trucker Celadon Group Files for Bankruptcy