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The transportation holding company, which is nearly 100 years old, filed for bankruptcy in a Delaware court, listing estimated assets and liabilities of $1 billion to $10 billion, with over 100,000 creditors.
YELL has $1.3 billion in debt due in 2024, and the collapse has put around 30,000 employees at risk. The freight industry is currently facing a decline in volumes which has only weighed on the company.
“It is with profound disappointment that Yellow announces that it is closing after nearly 100 years in business,” said Yellow’s chief executive officer, Darren Hawkins.
Hawkins (NASDAQ:HWKN) told workers and employers it should worry about the company’s experience with Teamsters, blaming it for its bankruptcy filing. There have been intense discussions between Yellow and the union regarding an internal restructuring plan aimed at enhancing productivity.
The union has previously stated that YELL has not managed itself properly, despite the workers making concessions and a federal bailout.
