Less-than-truckload carrier Yellow Corp. ceased all operations at 12 p.m. Sunday, according to a notice on the gates at its terminals.
Separate internal documents showed the procedures for closing the facilities as well as “talking points” to be used when informing union employees not to show up for their shifts. The documents indicated the company plans to issue a public statement Monday updating “the state of the company and the operation.”
On Friday, Yellow (NASDAQ: YELL) laid off most of its nonunion employees in areas like customer service, information technology and sales. The company stopped making pickups earlier in the week and has been delivering the remaining freight in its network ahead of what appears to be a permanent closure.
After months of negotiations with its Teamsters workforce, the carrier has been unable to reach terms over proposed operational changes it has said were required for its survival. In a breach of contract lawsuit filed last month regarding the matter, the company said it could be out of cash as soon as mid-July.
Most are expecting Yellow to announce it will file for bankruptcy Monday.
Representatives from Yellow had not commented by the time of this publication.
WTF
“In 2020, under the Trump administration, the Treasury Department granted the company a $700 million pandemic-era loan on national security grounds. Last month, a congressional probe concluded that the Treasury and Defense Departments “made missteps” in this decision — and noted that Yellow’s “precarious financial position at the time of the loan, and continued struggles, expose taxpayers to a significant risk of loss.”
This could be why Yellow got that $700 million loan. Corporate bailout from a Republican runned government. 🤔
Blue Collar workers and Taxpayers are always saving Corporate America!
Where’s the Money. Darren D. Hawkins?
Michael Beever
Hate to see it go 😔, cheap freight hurts the entire industry, too many variables for freight companies to pay the bills. profit margins aren’t enough to keep the wheels rolling/doors open.add unions that would rather destroy a company than face the bottom line…
James Desmond
Apollo, Venture Capitalist Investment in us in 2020, right after the 700,000 from the Government, is the stake in the Heart of the working class. Our jobs mean nothing, when Apollo can make more money parting us out. They had seats on the Board and there aggressive 2 to 3 year runway for their return is the “Feather” 33,000 Employees, Economical Impacts Ripple Effect will be felt. Taxpayers should be just as outraged as the 👪 family’s effected by the Parasitic Capitalist Apollo. The Government bailout was 700,000, a Bridge 🌉 Loan to be paid down next year. Apollo’s Board should be investigated for Defrauding us all. The 600,000 Investment they made right after the bailout, was not in good faith. The Teamsters & Companies have been working things out since 1912.
Dan
You can bet the executives will all walk away from this with wads of cash . They will bleed it all down to nothing , just wait and see.
Scott
ACTIVE USA is hiring! We are also TEAMSTERS!
Anonymous
Freight will be stuck along route. Up to terminal managers to contact customers states and provinces away to arraign furtherance.
David Farrell
The Unions had destroyed thousand of jobs, is it really worth having a Union? Maybe it is time Companies pay the hourly workforce a great starting pay rate, everyone is happy no Unions
Roy Anderson
Poor management, greed from execs and teamsters.