U.S. mail hauling company abruptly shuts down, no bankruptcy yet

The freight trucking industry recession, which has plagued shipping companies since 2022, has resulted in a considerable choice of companies filing for financial disaster protection, while some others have just shut down their businesses without filing a petition.

The list of shipping companies filing for financial disaster continues to grow as companies struggle with declining demand, high interest rates and inflation.

Related: Renowned retail product maker files for Chapter 11 financial disaster

Huge shipping company Pride Group operated a fleet of about 20,000 tractor-trailers owned, leased, reduced in size for service, serviced or securitized and operated 50 owned and leased locations across Canada and the U.S.

It stated as of Aug. 6 that Pride Group's fleet consisted of 1,459 trucks and trailers, 1,383 owned by the debtor.

The debtor filed for defense on March 27, 2024, less than the Companies' Creditors Arrangement Act contained in the Ontario Superior Court of Justice in Canada, seeking to move forward with a going-concern sale or wind-down of Pride Group. It blamed effects from the Covid19-19 pandemic for the company's financial crisis.

Mississauga, Ontario-based company in consequence filed for Chapter 15 financial disaster protection on April 1 contained in the U.S. Economic ruin Court for the District of Delaware seeking recognition of a foreign proceeding to give protection to its assets contained in the U.S. from creditors.

Austin, Texas-based global e-commerce shipping company DRF Logistics filed for Chapter 11 financial disaster on Aug. eight contained in the Southern District of Texas seeking to wind-down and liquidate its business after reporting annual losses per annum since being acquired by Pitney Bowes in 2017.

Related: Mattress Firm rival files for Chapter 11 financial disaster

Several more shipping companies filed for financial disaster and shut down operations besides.

Freight forwarder company Boateng Logistics shuttered its business after the firm on Feb. 22 filed for Chapter 7 financial disaster with plans to liquidate, and 92-year-old trucking company Arnold Transportation Services laid off all of its employees and shut down operations five days earlier than filing for Chapter 7 liquidation on April 30.

U.S. Logistics Solutions, a shipping company owned by inner most equity firm Ten Okay Group, on June 21 filed for Chapter 7 financial disaster contained in the U.S. Economic ruin Court for the Southern District of Texas in Houston, shut down operations, laid off its employees and planned to liquidate its assets.

The other big shipping company has shut down all its operations, but has no longer yet filed financial disaster.

Midwest Transport ceases operations

Robinson, Ill.-based trucking and logistics company Midwest Transport, which has a contract with the U.S. Postal Service to haul mail, has okay away shut down and may wind down operations, sources conversant in the placement told FreightWaves.

Midwest Transport's regional managers reportedly notified employees by phone late on Sept. 5 that the company become winding down operations. The company, which employs over 480 drivers among about 650 workers, had no longer yet made a statement about it ceasing operations and had no longer filed for financial disaster protection at last check on Sept. 6.

More financial disaster stories:

• Bankrupt Home Depot rival forced to liquidate remaining stores

• The other popular ice cream brand files for Chapter 11 financial disaster
• Renowned burger chain faces likely Chapter 11 financial disaster
• Huge shipping company files Chapter 11 financial disaster to liquidate

The company, which become established in 1980, operates key terminals in Greenup, Ill.; Harmony, Pa.; Jacksonville, Fla.; Memphis, Tenn.; and Tampa, Fla. Or not it truly is some of the biggest transportation contractors with the U.S. Postal Service and has won the Eagle Spirit Award, the Postal Service's best possible honor for mail transportation contractors.

A U.S. Postal Service media representative has no longer immediately responded to a request for comment.

Former drivers were reportedly surprised that the company ceased operations. Many had received notices during the last a few months to confirm their logbooks were certified after each and each run and to visual display unit their speed and strengthen their on-time performance, FreightWaves reported.

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