A traditional company from the United States has filed for bankruptcy. About 30,000 jobs will now be lost at the well-known shipping company.
how CNN It was reported that the US carrier “Yellow” is insolvent. The formerly dominant company has now announced that it will be dissolved after 99 years. 30,000 employees are affected.
The Nashville-based logistics provider said Sunday it has filed for Chapter 11 relief in the US Bankruptcy Court for the District of Delaware. Early last month, Yellow warned that it was at risk of running out of funds to continue operations.
“It is with great disappointment that Yellow announces the closure of the company after nearly 100 years in business,” CEO Darren Hawkins said in a statement.
The Treasury reportedly made a mistake by lending to the trucking company as part of its 2020 Covid-19 rescue package. Yellow Corporation has received a $700 million pandemic relief loan from the US government. Only $230 returned.
Indebted: the Yellow shipping company is insolvent
Photo: Imago Images
Many employees have been employed at Yellow for decades. Founded in 1924, the company has provided quality, well-paying jobs to a large number of Americans.
Yellow said it expects to reach a settlement with its creditors, pending court approval, that will allow it to pay some wages and benefits and some obligations to vendors and suppliers.
The company disclosed a long list of creditors in its court case. These companies include Amazon, Home Depot, Goodyear Tire & Rubber Company, and others.
Yellow has long struggled with declining business, a heavy debt load, and a long-running dispute with the Teamsters union, which represented 22,000 of its 30,000 employees, including its drivers and most dockers.
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