IPS Worldwide’s bankruptcy filing leaves many shippers seeking to get their money back, in some cases in excess of tens of millions of dollars.
Third-party freight payment and audit services provider IPS Worldwide of Ormond Beach, Fla., filed for bankruptcy Friday, leaving many shippers seeking to get their money back, in some cases in excess of tens of millions of dollars.
According to the Chapter 11 filing in the U.S. Bankruptcy Court for the Middle District of Florida, more than $121 million is owed to IPS’ 20 largest customers, including $41.64 million to Stanley, $28.78 million to Alcoa and $16.96 million to Arconic. These companies advanced the money to IPS to pay their freight transportation bills.
IPS was started in 1998 by William Davies, who serves as president. According to the company’s website, IPS processes more than 35 million freight invoices valued at more than $8 billion a year.
However, IPS claimed in its bankruptcy filing to have less than $50,000 in business assets.
This isn’t the first time that a major freight payment company allegedly has defrauded shippers. In 2013, TransVantage and Trendset were hit by lawsuits from shippers who claimed the companies failed to use their advanced funds to pay carrier bills.
Freight payment provider files for bankruptcy
