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

The freight trucking industry recession, which has plagued shipping companies since 2022, has resulted in a few 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: Well known retail product maker files for Chapter eleven financial disaster

Huge shipping company Pride Group operated a fleet of about 20,000 tractor-trailers owned, leased, shrunk 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 within the Ontario Superior Court of Justice in Canada, attempting to search out to move forward with a going-concern sale or wind-down of Pride Group. It blamed effects from the Covid-19 pandemic for the company's financial crisis.

Mississauga, Ontario-based company consequently filed for Chapter 15 financial disaster protection on April 1 within the U.S. Financial disaster Court for the District of Delaware attempting to search out recognition of a foreign proceeding to offer protection to its assets within the U.S. from creditors.

Austin, Texas-based global e-commerce shipping company DRF Logistics filed for Chapter eleven financial disaster on Aug. 8 within the Southern District of Texas attempting to search out to wind-down and liquidate its business after reporting annual losses each year since being acquired by Pitney Bowes in 2017.

Related: Mattress Firm rival files for Chapter eleven financial disaster

A couple of more shipping companies filed for financial disaster and shut down operations along with.

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 5 days prior to filing for Chapter 7 liquidation on April 30.

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

Every other big shipping company has shut down all its operations, but has now not yet filed financial disaster.

Midwest Transport ceases operations

Robinson, In poor health.-based trucking and logistics company Midwest Transport, which has a contract with the U.S. Postal Service to haul mail, has shut down and can wind down operations, sources conversant within the placement told FreightWaves.

Midwest Transport's regional managers reportedly notified employees by phone late on Sept. 5 that the company change into winding down operations. The company, which employs over 480 drivers among about 650 workers, had now not yet made a statement about it without notice ceasing operations and had now not filed for financial disaster protection eventually check on Sept. 6.

More financial disaster stories:

• Bankrupt Home Depot rival forced to liquidate remaining stores

• Every other renowned ice cream brand files for Chapter eleven financial disaster
• Well known burger chain faces likely Chapter eleven financial disaster
• Huge shipping company files Chapter eleven financial disaster to liquidate

The company, which change into established in 1980, operates key terminals in Greenup, In poor health.; Cohesion, Pa.; Jacksonville, Fla.; Memphis, Tenn.; and Tampa, Fla. It is miles one within the complete largest transportation contractors with the U.S. Postal Service and has won the Eagle Spirit Award, the Postal Service's very best honor for mail transportation contractors.

A U.S. Postal Service media representative has now not without delay responded to a request for comment.

Former drivers were reportedly surprised that the company ceased operations. Many had received notices over the last a few months to make certain their logbooks were certified after every run and to observe their speed and beef up their on-time performance, FreightWaves reported.

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