As it has ceased operations of its 99-year-old company, Yellow Corp, an American trucking company that was previously a leader in its industry, has filed for bankruptcy.
The logistics provider based in Nashville announced on Sunday that it has filed for Chapter 11 bankruptcy relief in the U.S. Bankruptcy Court for the District of Delaware.
Yellow’s CEO, Darren Hawkins, issued a statement saying, “It is with profound disappointment that Yellow has announced that it is closing its doors after nearly 100 years in business.”
“Today, working for a single company for 20, 30, or 40 years is not common, yet many individuals have done so at Yellow. Yellow has given hundreds of thousands of Americans solid, well-paying jobs and rewarding livelihoods throughout generations.
Yellow has expressed hope to reach an agreement with its stakeholders on a settlement before gaining approval from the court, which would allow it to pay some wages and benefits and provide compensation to vendors and suppliers.
The company disclosed a lengthy list of creditors in its bankruptcy filing, including Amazon , Home Depot (HD), and Goodyear Tire and Rubber Company (GT), among the top 30 with unsecured claims.
The filing comes more than a week after the trucking company ceased operations, leaving over 30,000 people out of work. Last month, it had warned in a lawsuit that it was at risk of running out of the necessary funds to continue operations.
Given its longstanding struggle with cash demands, which had never materialized, coupled with a heavy debt burden and an ongoing battle with the Teamsters union, representing 22,000 of its 30,000 employees, including its drivers and the majority of its dockworkers.