Yellow Prepares to File for Bankruptcy as Customers Flee – IOTW Report

Yellow Prepares to File for Bankruptcy as Customers Flee

MSN: Trucking company Yellow is preparing to file for bankruptcy, according to people familiar with the matter, heightening the threat that one of the nation’s largest freight carriers will shut down as customers abandon it amid a cash crunch and union negotiations.

A bankruptcy filing by Yellow would put it at high risk of a liquidation since its customers already have started to abandon the trucker in large numbers, some of the people said. The company could seek bankruptcy court protection as soon as this week, though no decision has been made and Yellow continues to explore other options, they said.

A Yellow representative said Wednesday that “in keeping with the fiduciary responsibility of the company’s executives, the company continues to prepare for a range of contingencies.”

Yellow has been losing thousands of shipments to other operators because of the risk that a labor dispute will disrupt its operations, according to equity analysts and industry executives. The company averted a planned strike this week by the Teamsters union that represents most of its workforce, but the customer exodus has continued. Yellow has seen freight volumes fall 80% in recent days, according to a research report Tuesday by TD Cowen. more

11 Comments on Yellow Prepares to File for Bankruptcy as Customers Flee

  1. So is the gist of the article that Yellow is too big to fail and warrants a government bailout to make them solvent?

    Innovate, compete, or die. Or, as Adam Smith put it, self-interest is the motivator and competition is the regulator, both must exist in tandem.

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  2. @SNS

    That’s bugged me for a long time also, and most likely has a lot to do with their demise. It’s false advertising to call yourself one color and then show your logo in another color.

    If a company is yellow, get rid of the orange, for cryin’ out loud.

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  3. DavidW AT 11:23 AM
    “Yea unions. Another company bites the dust.”

    …I got my current job because a good friend was reduced to working in the same auto shop with me because his union got too greedy and the company shut his plant down, he moved on then invited me here; and that was 28 years ago, so I’m eternally indebted to him for hooking me up, but h/t to the union that shut his plant down or I never would have met him in the first place…

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  4. Unions are parasitical by nature.
    They’re supposed to have enough sense NOT to kill the host – just bleed it.

    But, like tapeworms, hookworms, heartworms, &c. sometimes they just can’t help themselves.

    mortem tyrannis
    izlamo delenda est …

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  5. TIM

    The reason Nixon made ERISA was unions! UAW killed Studebaker. Guess what? UAW pension funds were “under funded”!

    If you are a finance exec skip

    ERISA is Nixon’s “Big Brother” telling companies when an employee “vests” for retirement and how much the company must pay to “fund’ the retirement! Some of us said it was – and still is – Marxist! Nixon “resigned” before signing the law; Ford had to sign; but it was “Tricky Dick’s anti free market law; not Gerry’s!

    UAW killed Studebaker in 1963. It was a “big deal” but few thought the “Mailed fist of big govt” should intervene – before Nixon. Nixon did not believe in “free markets”! When asked how he justified his admin being the exact opposite of his promises, he said, “We’re all Keynsians now!” Horse shit! IRonnhy and I never were and still are not!

    10,000 years of history documents that for all but he elite, “our betters”; “The invisible hand of God.” has BY FAR created the most prosperity and happiness!

    Even plutocrats benefit; but not nearly as much as “The mailed fist ;of big government”. which crushes the hoi polo!
    ERISA!

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