American Yellow has filed for bankruptcy – Kommersant
[ad_1]
Today, August 7, the American transport company Yellow announced on bankruptcy and termination of activity. At the end of July, the company announced the suspension of work and the dismissal of a significant part of the employees. Yellow employed about 30,000 people. The company, founded in 1929, was one of the largest players in the American freight market. Its market share, according to the investment company TD Cowen, ranged from 8% to 10%. Her clients included retailers Walmart and Home Depot, the trucking division of Uber Freight, and others.
Yellow, which was known for its low freight rates, has experienced various difficulties in recent years. The company has had a long standoff with the drivers’ union and has accumulated debt from several acquisitions of smaller competitors, as well as a $700 million loan from the US government in 2020. The company’s total debt at the end of March was estimated at $1.5 billion Yellow is going to sell property, including 12 thousand trucks and several dozen cargo terminals, in order to pay off loans, pay salaries to employees, etc.
[ad_2]
Source link
