Yellow, a well-established LTL (less-than-truckload) carrier with its main office located in Nashville, has decided to halt its operations. This decision has been confirmed by the International Brotherhood of Teamsters and comes at the age of 99 for the company.
On Sunday night the union posted on its website:
The Teamsters Union was served legal notice today that Yellow Corp. is ceasing operations and filing for bankruptcy.
“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.
The Teamsters are committed to ensuring members are protected and notified with all the latest information. The International is putting infrastructure in place to help affected members get the assistance they need to find good union jobs throughout freight and other industries.
Many sources are indicating that Yellow might file for bankruptcy today.
Rumors about the downfall of this 30,000-employee company have been circulating for some time. Recently, the company announced its intention to sell Yellow Logistics, which is its third-party logistics subsidiary. Additionally, Yellow faced a potential strike by its 22,000 drivers earlier this month, but the union granted them an extension of 30 days to settle a $50 million benefits payment that was overdue.
Furthermore, Yellow has not yet managed to repay the $700 million pandemic relief loan it received back in 2020. This outstanding amount is part of the $1.3 billion debt that the company is expected to repay in the autumn of 2024.
At its peak, the company operated around 300 terminals and possessed an extensive fleet of over 14,000 tractors and 43,000 trailers. Among its portfolio of brands are Holland, New Penn, Reddaway, and YRC Freight, which are all operated by Yellow.
