Editor’s note: This story was updated to reflect that the company’s CEO says he is working to bring drivers home.
HVH transportation, a 344-unit trucking company, has abruptly shut down. It’s the latest in a string of trucking failures stemming from an economic environment that has put pressure on operating ratios.
The Denver, Colorado truckload carrier operated in all contiguous states west of the Appalachian mountains, with the exception of the deep South. According to Pitchbook, the trucking company had been operating since 1956 and was acquired by HCI Equity Partners, a private equity firm, in October 2012.
Initial reports in the wake of the abrupt shutdown indicated that the company left drivers stranded over the road, in a situation that was eerily similar to the sudden closure of Falcon Transport, another private equity backed trucking company that abruptly closed earlier this year.
Subsequent to the publication of this story, the company’s CEO, John Kenneally, said he is actively working to avoid stranding drivers and get them back home.
HVH, which has also gone by the name of Thacker Brothers Transportation, had 344 power units and employed 324 drivers. The company’s website and social media accounts were still operating as of Wednesday morning.
HCI Equity Partners has $957 million dollars in assets under management and has made investments in trucking and logistics buy-outs in the past, including investments in Road Runner (NYSE: RRTS) Naumann Hobbs Material Handling, GO2 Logistics, Milan Supply Chain, Southern Ag Carriers.
HCI exited its investment in Road Runner earlier this year, when the hybrid truckload/LTL carrier recapitalized the company with an investment from Elliott Management.
2019 has been the worst year of profitability in the trucking industry in over five years. Even the downturn of 2016 was not nearly as painful in terms of operating losses.
According to operating ratios across the industry, the average dry-van truckload carrier has teetered on losing money every month in 2019.
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Operating Ratios (OR) measure operating costs in relation to revenues. A high operating ratio is considered a bad thing (a 100 is an operating break-even, anything above one-hundred is a loss and anything below represents operating profit). OR will come before any debt servicing, distribution, or taxes.
This data is compiled based on financial reports from over 220 truckload fleet profiles, representing over 70,000 trucks, ranging from mid-sized (75 trucks to enterprise 7000 trucks). The operating KPI data is aggregated in partnership with the Truckload Carrier Association’s Truckload Indexes and available exclusively on SONAR.
Eight mid-size and large carriers have shut their doors in 2019 including NEMF, Falcon, and LME.
Alric
This is no shock. For more than a year their drivers have been leaving due to policy changes that made HVH a typical lease purchase company, and their long time drivers stopped making money. Freight levels may have played a role, but part of these failing companies is poor management causing their drivers to go elsewhere. And when they have 50% less people to rob they go bankrupt. If the FMCSA truly gave a crap about safety and keeping drivers they would penalize companies with shady business practices.
VA...Smiley
Finally….low balling rates until you can’t go any lower!!…lol
ALL drivers were waiting on this day to come!! The bottom has finally fell from under the industry!! Now we see the real reason the eld changes are coming!!! Lol i hope they ALL go out of business!!! Heartless Corporations are no good for any industry!! Regulate the hell out of the driver but let the companies get away with murder!! RIP( Rest in Piss) big companies!! Now we need the Owner Ops to leave that cheap freight on the docks until they realize Nobody will pull it until they pay more!! Life will get better for the trucker!! Don’t let them use their #1 tactic that They Always use for EVERYTHING…..FEAR!!! LOL
Lorne Houle
I will also help any stranded HVH drivers get back to where they need to be. Contact me at the following email: houletrucktrans@aol.com or 775.291.3256
Shari Lee Campbell
The CEO is a liar! I reached out to my drivers as a Driver Manager/Dispatcher and told them to fill their trucks with fuel, that HVH closed their doors! That fuel cards were going to be shut off. Now they are. Cleaning out my desk and still answering phones. I informed everyone that called what was going on. I was then directed by the Operation and Maintenance Director to stop answering the phones. I did not, they couldn’t let me go twice! The fuel cards ARE SHUT OFF!! HVH is NOT getting drivers home, other companies such as Navajo, Bay and Bay out of MN, and Direct Transport out of Commerce City, CO are saving our drivers. The brokers Echo, Ch Robinson that still had loads, they are paying fuel and compensating drivers for their last loads. The CEO, and the COO are nothing snakes in the grass! To say that he is helping??? Unbelievable!!!
Matter of fact I was Terry Sanders Driver Manager!
Davidcollins
Threatening to fire you is realy funny as the vessel sinks.
glenn
That would be like firing the stewards who were told not to fill mt lifeboats on th titanic..worked for the in 88 with old junker road boss trucks they bought from king soopers fleet..an absolute nightmare.
Lorne Houle
I will also help any stranded HVH drivers get back to where they need to be. Contact me at the following email: houletrucktrans@aol.com or 775.291.3256
Hollis Wayne Thomas
HVH is a piss poor company my DM called and told me drop youe load at yard send in bills fill up your truck get hell out of dodge. Bank says they are paying all drivers for last 2 weeks of loads another lie?? Who onowd time will tell other companies reaching out and hiring HVH drivers
Shannon
I am so sorry to hear about this – I was previously employed by FTI and ran as soon as I heard some of the fishy things happening between the companies HVH included – my heart goes out to all the employees and the drivers and to the Driver Managers that are sticking with the drivers and have warned them to the end Kudos – that is amazing – All my best to you and the others — HCI should really have to pay for what they have done to so many amazing carriers and the families left broken – as for HVH and FTI shame on you both for not taking care of everyone
William C Frederick
Hello mrs Sherri you and tonya and luanne thank you all for being my fleet Managers thank you for help when I needed it and yes mrs Sherri you are spot on every trailer i got since the end of june when i would say something one ear out the other when a roadside service refuses to come out because the company accounts are on hold yep big red flag
Michael
Cant cheat the paper no more, maybe Drivers will see how much they were being abused by carriers during the paper age. My carrier is profitable AND I make 87k a year. If your carrier is living on the spot market, they’re dying on the spot market. I do agree that drivers do need to be paid by the hour. There is still too much uncompensated time in the industry.
Big Rig Stig
Huh. “another private equity backed trucking company”.
Seems like these “private equity companies” exist only to drive the companies they “invest” in into the ground, then break them up like a block of ice, to put in their expensive drinks. The road is litterest with their detritus: Hostess, ToysRUs, this company, and a whole host of others.
It’s all about the greed.
Terry Sanders
I drove for this company and they have been not paying drivers for Months now. The CEO is a real bad person and lies so very much. I am not sure why you do not tell the truth here in this issue. Per the Federal Transportation Administration this company only had 276 trucks in July and only 176 drivers. you can check that out on the safer web. HVH does not own a truck one they were all leased from Ryder and Penske in which both were personally warned by me in July this was happening. HCI Equity was also contacted many times and never returned any calls. HCI Equities is a bad company also and should be closely investigated for Illegal acts. As for the CEO he is just pure garbage and could care less about anybody…. These people should be in prison not allowed to file bankruptcy and get away with it. I personally believe that Brad Micheals with Ryder should lose his job also for knowing all about the HVH practices and choosing to remain silent about it until now.
William C Frederick
I too told Bradley micheals as well because of hvh practices I didn’t have my truck a week it went to the shop my contract states I get a loaner after 4 hours I didn’t get one for 2 weeks the first installment of my bonus was applied to my lease then I got my replacement truck Bradley micheals knew this and knew my truck was down but said nothing
Kevin
Every news report on a business failure that involves “private equity” should post the amount paid to the former owners and the amount of debt the “financial geniuses” saddled the company with. That would put the situation into the proper perspective.
crankypaul
But then the MAGA crowd won’t have a sustainable argument. You want to destroy the story with FACTS and ACCURACY? What’s wrong with you?