Trucking company Yellow Corp. is reportedly preparing for bankruptcy. Here's what you need to know
After years of financial struggles, U.S. trucker Yellow Corp. is reportedly preparing for bankruptcy and seeing customers leave in large numbers
NEW YORK — The fate of U.S. trucking company Yellow Corp. isn't looking good.
After years of financial struggles, Yellow is reportedly preparing for bankruptcy and seeing customers leave in large numbers — heightening risk for future liquidation. While no official decision has been announced by the company, the prospect of bankruptcy has renewed attention around Yellow's ongoing negotiations with unionized workers, a $700 million pandemic-era loan from the government and other bills the trucker has racked up over time.
Yellow, formerly known as YRC Worldwide Inc., is one of the nation's largest less-than-truckload carriers. The Nashville, Tennessee-based company has some 30,000 employees across the country.
Here's what you need to know.
IS YELLOW FILING FOR BANKRUPTCY?
Not yet. But industry experts suspect that a bankruptcy filing could come any day now.
People familiar with the matter told The Wall Street Journal that the company could seek bankruptcy protection as soon as this week — with some noting that a significant amount of customers have already started to leave the carrier.
Meanwhile, according to FreightWaves, employees were told to expect the filing Monday. Yellow laid off an unknown number of employees Friday, the outlet later reported, citing a memo that stated the company was “shutting down its regular operations.”
According to Satish Jindel, president of transportation and logistics firm SJ Consulting, Yellow handled an average of 49,000 shipments per day in 2022. As of this week, he estimates that number is down to between 10,000 and 15,000 daily shipments.
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