Yellow, one of the oldest and the nation’s third-largest trucking business, is preparing to file for bankruptcy and is discussing selling off all or parts of the business.
Yellow shut down on Sunday, wrecked by a string of mergers that left it saddled with debt and stalled by a standoff with the Teamsters Union.
What Yellow couldn’t deliver—despite swallowing rivals, getting union concessions, and securing a government bailout—was consistent service for customers or profits for investors, reports the Wall Street Journal.’
Wall Street Journal:
The 99-year-old company is known for its cut-rate prices and has more than 12,000 trucks moving freight across the country for Walmart, Home Depot, and many other smaller businesses. What Yellow couldn’t deliver—despite swallowing rivals, getting union concessions, and securing a government bailout—was consistent service for customers or profits for investors.
It imperils 30,000 jobs, including 22,000 Teamsters members. Hundreds of nonunion members were laid off Friday. That is the day the company stopped taking in new shipments from customers. It ceased all operations on Sunday.
IT LOOKS BLEAK FOR YELLOW
After nine months of stalling negotiations and finally making concessions, the Teamsters told their members that the situation looked bleak.
The U.S. Treasury owns 30% of the stock due to a loan from the Trump administration. This was in 2020 during the pandemic, followed by Bidenomics.
There is also a rice shortage due to India’s ban on the export of rice. The preparedness video below warns it could be more serious than we realize. It might be exaggerated, but it could serve as the canary in the coal mine.
They interview Yellow trucking employees here:
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