 Majortrucking company files Chapter 11 bankruptcy to restructure |
Source |
American Shipper |
Post Date |
05/13/2025 |
|
TheTexas-based transportation company files for bankruptcy to restructure itsdebt.
The Great Freight Recession over the last threeyears has led to financial distress for many trucking, transportation, andlogistics companies.
Trucking companies have battled reduced shipping demand,lower freight rates, and rising costs of labor, fuel, and insurance, which haveimpacted revenues and profits.
Several trucking companies in April either filed for Chapter 11 bankruptcy or shut their doorswithout going bankrupt.
Madison, Ill.-based LTI Trucking, with about 250 drivers,300 tractors, and 575 trailers, shut down its operations on April 2, but it hadnot filed for bankruptcy at last check. The company was a major shipper ofproducts for AB InBev, KraftHeinz, Vlasic, Hersheys, Nestle, Tyson, HillshireFarm, Kroger, Hostess, and Sara Lee.
Florida-based trucking company Davis Express Inc. revealedon its Facebook page that the company was shutting down its businesspermanently after making its final deliveries on April 23 and returning alltrucks to its terminal by April 30.
The owner of the company said he will retire and does notwant to wait any longer for the business to turn around or to find a buyer. Thefounders family is no longer interested in continuing the business due toindustry challenges, he said.
All employees will be paid and receive benefits throughtheir June 15 pay period, the company said.
Davis Express has 160 trucks and 140 drivers, according tothe Federal Motor Carrier Safety Administration SAFER web page. It will lay offits drivers, but will continue to employ mechanics and operate its shop whilethe company takes equipment out of service and sells assets.
3 truckingfirms file bankruptcy on same day
April 7 was a bad day for the trucking industry as threecompanies filed for Chapter 11 protection on that day. A small trucking firm,Memphis, Tenn.-based Best Logistics Inc., filed for Chapter 11 bankruptcy undera Subchapter V petition in the U.S. Bankruptcy Court for the Western Districtof Tennessee.
Another freight transportation and logistics company,C&C Freight Network, also filed for Chapter 11 bankruptcy to restructureits debts, facing economic problems. The debtor indicated that no funds wouldbe available to distribute to unsecured creditors.
And, Dedham, Mass.-based Best Choice Trucking LLC, filedfor bankruptcy to restructure its debts, which include a large amount ofvehicle financing.
Balkan Expressfiles for Chapter 11 protection
Finally, transportation and logistics company BalkanExpress and its affiliate Balkan Logistics filed for Chapter 11 bankruptcy torestructure their debts on April 30.
The Fort Worth, Texas, general freight trucking companyfiled its petition in the U.S. Bankruptcy Court for the Northern District ofTexas listing $10 million to $50 million in assets and liabilities.
More bankruptcies:
The debtor indicated in its petition that funds would beavailable to distribute to unsecured creditors.
Balkan Express operates 159 power units and employs about166 drivers who ship general freight, including beverages, according to theFederal Motor Carrier Safety Administrations SAFER website.
The companys website said that the company, which hasoperated for 16 years, has 150 trucks on the road and employs 250 people,covering 48 states.
Balkan provides ground transport and freight forwardingservices; trucking service; and logistic services, whether it is freighttransportation, supply chain solutions, warehousing anddistribution, temperature-controlled logistics, or customs, security andinsurance; and 24-hour dispatcher support.
M&T Capital filed a lawsuit against Balkan Express inMarch 2025, alleging the company owed it over $4.2 million in unpaid loans,interest, and attorney fees related to the lawsuit, FreightWaves reported.
|
|
|
|
