Summary:
- Yellow Corporation, a major trucking company, is on the brink of bankruptcy.
- The company's financial struggles have been ongoing, with reports of bankruptcy preparations surfacing last week.
- Yellow was $1.5 billion in debt, with a significant portion owed to the federal government.
- The threat of a potential strike led to major customers moving their freight away from Yellow.
- While Yellow has not filed for bankruptcy yet, it is expected to happen soon.
A major trucking company is on the brink of bankruptcy. Yellow Corporation has shut down operations impacting 30,000 workers nationwide. YRC Freight in Richland, which is part of Yellow, closed its doors earlier this week. Reports of Yellow preparing for bankruptcy surfaced last week after years of financial struggles. Back in March, Yellow was $1.5 billion in debt and owed more than 720 million of that to the federal government. As far as the biggest shock to the system, Yellow has kind of been flirting with bankruptcy since about 2009.
Financial Struggles Lead to Potential Bankruptcy
And then we sort of had that period about a week or so, probably a little bit longer than a week if you were really tuned in leading up to a potential strike on July the 24th. That would have been really bad. But the threat of that strike is what scared a lot of these major customers off. That's when Walmart started moving. That's when Home Depot started moving. That's when a lot of Yellow's customers really started moving their freight. Yellow has not filed for bankruptcy yet, but it is expected to come soon.The future of Yellow Corporation remains uncertain as it faces the possibility of bankruptcy. The impact on thousands of workers and the freight industry as a whole is significant. Observers are closely watching the developments in the coming days to see how this situation unfolds.