Around 30,000 employees in the USA are losing their jobs: One of the largest freight forwarding companies has to close its doors.
Yellow is one of the largest trucking companies in the United States and counts major retailers such as Walmart and Home Depot among its customers. The nearly 100-year-old company is now planning to close down. The reason for this is excessive debt, which is why the company has filed for bankruptcy protection.
“Yellow announces with great disappointment that the company is closing,” CEO Darren Hawkins said in a statement on Sunday. “It’s not common today for someone to work 20, 30, or even 40 years at a company, but many at Yellow have. For generations, Yellow has provided hundreds of thousands of Americans with solid, well-paying jobs and fulfilling careers.” Around 30,000 employees are now expected to lose their jobs.
Received $700 million US loan
The bankruptcy petition was filed with a court in the US state of Delaware. Yellow’s assets were estimated at $2.15 billion and the company’s total debt at $2.59 billion. The company has around 100,000 creditors.
The shipper has $1.3 billion in debt to pay off by 2024, including a US government loan that matures in September. This was granted as part of a pandemic relief program in 2020 under then-President Donald Trump.
The Yellow intends to repay the $700 million loan in full, the company said. According to experts, whether this will work will depend on whether it is successful in selling its properties and around 12,000 trucks.
The US freight forwarder’s shares plummeted on Monday. In late US trading on the Nasdaq, the paper collapsed by 25 percent.
2023-08-08 01:16:27
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