After years of struggles and bailouts, Yellow Corp. Trucking Company will likely file for bankruptcy on Monday, July 31, according to The Wall Street Journal.
In 2020, Yellow received a $700 million bailout loan from the US government which is due in September 2024.
Yellow is reportedly burning through approximately $10 million per day.
According to FreightWaves: “Yellow (NASDAQ: YELL) is the third-largest LTL company and employs some 30,000 workers, including around 22,000 Teamsters members. The trucking company had an operating revenue of $5.245 billion in 2022.”
Customers are fleeing as Yellow struggles with financial problems and labor disputes.
The Wall Street Journal reported: “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.”
With a loss of customers and a cash flow problem, this puts Yellow in a position where they may be forced to file for bankruptcy.
The company has over $1 billion in loans due next year. A good portion of that was a covid loan that may have been potentially erred in giving to the company.
According to the Wall Street Journal: “Of the $1.3 billion in loans the company has coming due next year, $729 million are from the government, according to Yellow’s latest quarterly report. The company reported about $1.48 billion in total debt at the end of the first quarter against $806 million in assets.”
This has caused a lot of distress in the workers.
As Gateway Pundit previously reported, a longtime Yellow truck driver lost it after being told his pension is in jeopardy. One Yellow truck driver went off on his boss after learning he may not have access to his benefits and pension as the company teeters.
“It’s the motherf*ckers up there, I worked my ass for this company. This is my money y’all are playing with. F*ck this sh*t,” the disgruntled truck driver shouted at a warehouse in Florida.
WATCH (language warning):
@doneright40 This is what happens when you tell a driver that has been working for yellow freight for over 30 years that they are no longer going to have a pension.#yellowfreight #teamstars ♬ original sound – Francky
More on Yellow’s impending bankruptcy from FreightWaves: