Nearly 4,000 employees of Celadon Group were Inc. terminated on Monday when the company announced it had filed for Chapter 11 bankruptcy and was ceasing business operations immediately. The move came the same day as an announcement that the company’s COO and CFO are facing multiple fraud charges relating to allegations earlier this year that the company executives had mishandled its finances.
Logistics Management magazine called it the “largest TL bankruptcy in history.” TL is a term used to describe truck haulers that carry a full truckload of a single item for a company as opposed to LTL (less than truckload) drivers who carry a variety of products from multiple companies in the same load.
The impact of this closure will have far-reaching impact across the country. John Schulz, contributing editor to Logistics Magazine says this event is “definitely a shock to the trucking industry.” He said many shippers will now have to scramble to find needed hauling capacity.
Indiana Motor Truck Association Vice President Barbara Hunt said the national impact will affect the association in ways it cannot even comprehend yet.
Celadon’s fleet consisted of 10,000 trailers and 3,300 tractors. Of its nearly 4,000 workers, mostly were truck drivers. It is tragic that these workers find themselves suddenly out of work right before the holidays. IMTA and other trucking companies are working to give rides to stranded truckers to get them back home. A Facebook page has been set up to help the displaced workers, many from Indiana, find alternative employment as well as financial assistance. To visit the page, click here.
For the full story from Logistics Management magazine, click here.
