Major trucking company to close after nearly a century, leaving 30,000 jobless.

Trucking Giant Yellow Files for Bankruptcy, Putting 30,000 Jobs at Risk

Yellow, a trucking company with a rich 99-year history, is set ​to file for bankruptcy, ⁣resulting in the potential loss of up⁣ to 30,000 jobs, according to the company’s union.

Founded in 1924 in Oklahoma, Yellow has⁤ been grappling with debt in recent years. During the COVID pandemic, the company ​took approximately ‌$700 million in loans from the ‍federal government, as reported by the⁣ Wall Street Journal.

“Today’s news is unfortunate but not surprising. Yellow has historically proven that it could not manage itself ‍despite billions of dollars in worker⁢ concessions and hundreds of millions in ‍bailout funding​ from the federal government.⁤ This is a sad day for workers and the American freight ⁢industry,” said Teamsters General President Sean ​M. O’Brien.

In a company notice obtained by the Wall⁤ Street ​Journal, ⁣Yellow announced the closure of its regular‌ operations on July 28, 2023, resulting in layoffs across all locations.

Already, hundreds of workers have‍ been ⁤laid off,‍ and thousands more face unemployment if the company ⁤officially files for bankruptcy, ​which is widely expected. Forbes reports that Yellow’s first-quarter debt was $1.47 billion, while ​its‌ assets amounted to just $806 million.

With a fleet of approximately 12,000 trucks, Yellow played a crucial role in ⁣transporting freight for major⁣ companies⁣ like Home Depot and Walmart, as highlighted by the Journal.

Union leadership has strongly‍ criticized the⁣ company’s management, placing much ⁤of the blame on ⁢them for the financial troubles. “Teamsters⁣ have kept this company afloat for more than a decade through billions of dollars in wage, pension, and work-rule concessions. ​Yellow couldn’t manage itself, ​and it wasn’t up to ⁤Teamsters to do it for them,” said a union spokesman.

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This isn’t ⁣the first‌ time Yellow has faced bankruptcy. In 2009, the‌ company nearly collapsed but managed to survive after employees accepted ‍wage cuts and a $470 million debt-for-equity deal was negotiated.

The federal loans provided to Yellow ⁢during the‍ COVID pandemic ⁤have faced⁤ significant criticism. ​A congressional oversight report stated that the national security loan program, although well-intentioned, turned into an ⁣unnecessary taxpayer‌ bailout for financially struggling businesses like Yellow, ⁢which ⁢were⁢ not critical to national security.

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