A Minnesota-based logistics company recently folded and filed Chapter 7, owing several truck and trailer leasing businesses and finance companies millions of dollars.
Eagan, Minnesota-based 94 Logistics LLC filed its petition in the U.S. Bankruptcy Court for the District of Minnesota on Saturday.
In its filing, 94 Logistics lists assets of up to $500,000 and liabilities of $1 million to $10 million. The company, which has up to 49 creditors, maintains that no funds will be available for distribution to unsecured creditors after administrative fees are paid.
Todd Frigstad, president of 94 Logistics, did not respond to FreightWaves’ request seeking comment.
The logistics firm, which hauled general freight and specialized in last-mile delivery services, had 11 power units and 11 drivers, according to the Federal Motor Carrier Safety Administration’s SAFER website. FMCSA granted 94 Logistics’ operating authority in November 2019. The FMCSA site shows that the company’s authority is still active.
Its trucks had been inspected 35 times and 14 had been placed out of service in a 24-month period, resulting in a 40% out-of-service rate. This is nearly double the industry’s national average of around 21%, according to FMCSA data. The drivers were inspected 61 times and two were placed out of service, resulting in a 3.3% out-of-service rate, which is lower than the national average for drivers of around 5.8%.
In the petition, the logistics firm lists three creditors with secured claims, including Receivables Performance Management of Lynnwood, Washington, owed $156,000; Transport Funding of Philadelphia, $130,000 for two Kenworth tractors; and the U.S. Small Business Administration, $91,000.
Among the 20 largest unsecured creditors are the Minnesota Department of Revenue, owed nearly $137,000; the IRS, owed nearly $265,000; and the Illinois Department of Revenue, owed nearly $9,700.
The company also owes Ryder Truck Rental of Alpharetta, Georgia, nearly $437,000, Penske Truck Leasing of Reading Pennsylvania $444,000 and Crossroads Trailer of Albert Lea, Minnesota, $300,000.
In the bankruptcy filing, two judgments have been issued against 94 Logistics in Dakota County Courts in Minnesota, including Allstate Leasing of Minneapolis, owed nearly $91,000, and Broad Street Capital LLC of New York, owed more than $435,000.
At the time of its filing, the logistics firm reported gross revenue of $335,000. The company posted gross revenue of nearly $4 million for 2021 and around $5 million in 2020.
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