Top U.S. carrier files for Chapter 11
Executives arrested, drivers stranded & freight undelivered: Celadon goes bankrupt
Last Friday, about 2,500 truck drivers, working for Celadon Group, LLC, got a call from their dispatchers informing some to deliver their current load and then park the companies equipment at local yards or at truck stops. The company had declared Chapter 11 bankruptcy and the 2,500 drivers, along with 1,300 other employees were out of a job.
The announcement came shortly after the companies CEO and CFO were arrested by the Department of Justice on charges of security and accounting fraud. This is the latest scandal to rock the Indianapolis, Indiana based trucking company. Earlier in the year the company was found guilty of other accounting errors that resulted in a $33 million fine being leveled against them.
Additional factors contributing to the companies bankruptcy include large debts to Pilot Travel Centers and Goodyear Tire.
The company has offered to get stranded truck drivers home via bus, but are not offering any means to get their belongings home. It is never a good time of the year to find yourself laid off, but this is a particularly bad time of year.
Celadon reportedly operated 3,300 trucks, employed 3,800 workers of which 2,500 were drivers. The company hauled loads for Lowes Stores, Phillip Morris, Wal-Mart, Honda and Procter & Gamble. Celadon was one company in a $200 billion transportation market. The industry shouldn't suffer any problems with the absence, but this will be a hard hit for many families this holiday season.
About the Author:
"Chris Breeden is a Social Media content creator for Custom & Hot Rod Life on DRIVETRIBE, YouTube and Facebook. After spending 5 years in Southern California, a.k.a. Hot Rod Heaven, while serving as a jet engine mechanic in the United States Marine Corps, he moved back home to Tennessee with an even greater love for Hot Rodded Vintage Tin. Since then he has worked in retail sales and the transportation and logistics industry. In 2018, seeing a gap in Hot Rod and Custom Car coverage on DRIVETRIBE, Chris began advocating for their inclusion on the platform. During the summer months, he can be found all over the Tennessee region covering car shows, meets, and cruise-ins. During the winter months, he can be found in the garage working on his custom 1949 Ford two-door sedan and 1954 F100 truck."