An American trucking giant is expected to declare bankruptcy — and it may leave more than 3,200 truck drivers stranded and jobless
by Rachel Premack- The trucking giant Celadon is declaring bankruptcy this week, inside sources told FreightWaves on Friday.
- It’s poised to be the largest truckload bankruptcy in history.
- The bankruptcy has the potential to leave more than 3,200 truck drivers stranded away from home.
- Numerous Facebook groups have been set up to help stranded Celadon truck drivers connect.
- Visit Business Insider’s homepage for more stories.
The trucking bloodbath of 2019 is ending on a remarkably sour note.
Celadon, a truckload carrier that grossed $1 billion as recently as 2015, will file for bankruptcy on Wednesday or earlier, inside sources told the leading industry publication FreightWaves on Friday.
It’s poised to be the largest truckload bankruptcy in history – and the company’s drivers are already getting slammed.
The bankruptcy has the potential to leave more than 3,200 truck drivers stranded away from home. Sources told Business Insider that Celadon truck drivers’ fuel cards were already being turned off, leaving them unable to get home without spending serious cash on gas or arranging their own transport by car, plane, or bus.
An internal source confirmed to FreightWaves that the company might not be able to get drivers home on time and encouraged them to fill their tanks as soon as possible.
Numerous Facebook groups, including Celadon Closure Assistance and Jobs, have been set up to help stranded Celadon truck drivers connect. Celadon did not immediately respond to a Business Insider request for comment.
2019 has been a challenging year for truck drivers and their employers. About 640 trucking companies went bankrupt in the first half of the year, according to industry data from Broughton Capital LLC. That’s more than triple the roughly 175 bankruptcies from the same period last year.
Read more: Another 1,000 truck drivers lost their jobs in November, and it’s a chilling sign for the economy
ACT Research has said America’s $800 billion trucking market entered a recession early this year. Freight volumes have declined for 11 straight months. Manufacturing, which tracks the trucking industry, has contracted for four straight months.
The source of Celadon’s troubles dates back further, however. On Thursday, the Securities and Exchange Commission charged two former Celadon executives following a multiyear accounting scandal.
The news plunged Celadon’s stock to $0.41 a share on Friday – a considerable tumble from the more than $20 a share that the stock was worth in 2015 before the accounting scandal became public knowledge.
Are you a Celadon truck driver who is at risk for being stranded? Email rpremack@businessinsider.com.
Read more about the trucking recession of 2019:
Truckers are becoming more and more pessimistic about the US economy
‘I don’t know how long I can stay in business’: Truckers’ fears have soared to recession-level highs