Trucking firm Yellow that got $700 million US bailout declares bankruptcy
After months long negotiations between Yellow’s management and the Teamsters union broke down, the company shut its operations late last month, and said Sunday that it was seeking bankruptcy protection so it could wind down its business in an “orderly” way.
NEW YORK TIMESAUGUST 08, 2023 / 01:08 AM IST
Semi truck trailers are pictured at freight trucking company Yellow’s terminal near the Otay Mesa border crossing between the U.S. and Mexico, after the company filed for bankruptcy protection, in San Diego, California, U.S., August 7, 2023 (Reuters)
Three years after receiving a $700 million pandemic-era lifeline from the federal government, struggling freight trucking company Yellow is filing for bankruptcy.After monthslong negotiations between Yellow’s management and the Teamsters union broke down, the company shut its operations late last month, and said Sunday that it was seeking bankruptcy protection so it could wind down its business in an “orderly” way.
“It is with profound disappointment that Yellow announces that it is closing after nearly 100 years in business,” the company’s CEO, Darren Hawkins, said in a statement. Yellow filed a so-called Chapter 11 petition in U.S. Bankruptcy Court in Delaware.
The downfall of the 99-year-old company will lead to the loss of about 30,000 jobs and could have ripple effects across the nation’s supply chains. It also underscores the risks associated with government bailouts that are awarded during moments of economic panic.
