Yellow Corp shut down today

[Creekside]

30,000 employees out of work just like that. Several reasons for it that I won't get into because of forum rules. 5th largest fleet in the US.

I was told they essentially locked the gates today at 5pm EST.

 

[Dave Hess]

All mechanics were told to immediately remove all personal belongings and tools before they get locked out of facility.

Very unfortunate to see so many lose their job when the freight market is currently in a downturn.

 

[bullwinkle]

Well. they borrowed a TREMENDOUS amount of money & bought a bunch of their "competitors"-the bill is coming due...

 

[CT Rob]

2023 the year that keeps on ....

 

[double vanos]

Let’s hope those who lost their job get picked up by their competitors.

 

[Pew]

That's crazy. My friend just told me about that on Wednesday they called all the drivers back to the yard then told them good luck. Owner embezzled the money away or something I heard.

 

[MNgopher]

The writing had been on the wall for this one for quite some time. If you did any LTL shipping, Yellow was way down the list given everything that was happening.

 

[skyactiv]

I wondered how they stayed in business so long. I made a thread about them years ago. https://bobistheoilguy.com/forums/threads/financial-wizards-how-is-yrcw-still-in-business.205596/

 

[MNgopher]

A $700 million dollar pandemic era loan is one way they stayed in business... Less than 200 million of it was repaid. Any bets on whether that gets paid back...

 

[Dave Hess]

I wondered how they stayed in business so long. I made a thread about them years ago. https://bobistheoilguy.com/forums/threads/financial-wizards-how-is-yrcw-still-in-business.205596/

Lots of zombie companies can no longer restructure their mountain of debt and liabilities. It’s simply a matter of time the cash runs out, poor management and spending also sped up its demise.

Hopefully the employees get paid their last paycheck.

 

[SC Maintenance]

Lots of zombie companies can no longer restructure their mountain of debt and liabilities. It’s simply a matter of time the cash runs out, poor management and spending also sped up its demise.

Hopefully the employees get paid their last paycheck.

^^ This. There was a federal reserve note on just this problem a month ago. LIkely the first of many unfortunately.

Distressed Firms and the Large Effects of Monetary Policy Tightenings

The Federal Reserve Board of Governors in Washington DC.

www.federalreserve.gov

 

[tnt_motorsports]

Hmmmm another good use of subsidies I guess.

Just my $0.02

 

[Thermo1223]

They weren't a carrier we used the most but we did use them. That sucks.

 

[Dinoburner]

Not even Roadways management team could save yellow from itself. Once again the rank and file take it in the neck.

 

[Thermo1223]

Not even Roadways management team could save yellow from itself. Once again the rank and file take it in the neck.

0-9 years gets only 2 weeks of severance. That's a punch in the gut.

 

[Sonny88]

The worst part is the non paying in to the pension fund

 

[BHopkins]

Just this week, I was discussing with my wife, how some of the big carriers use cross docks. Yellow came up and, having not seen a Yellow truck in a very, very long time, I wondered if they were still in business. Sounds like they were when I asked the question.

That's too bad. A lot of people out of jobs. Hopefully all the other carriers who will be picking up the Yellow business, will also pick up a lot of the Yellow employees.

 

[JHZR2]

Not even Roadways management team could save yellow from itself. Once again the rank and file take it in the neck.

Well, did they strike? Did they threaten to?

If they did strike and the company folded, I have no compassion for them, and hope they get no unemployment or other benefits/severance. That’s playing with fire.

Doesn’t mean I don’t feel for the people who aren’t getting another paycheck soon…

 

[Skippy722]

Well, did they strike? Did they threaten to?

If they did strike and the company folded, I have no compassion for them, and hope they get no unemployment or other benefits/severance. That’s playing with fire.

Doesn’t mean I don’t feel for the people who aren’t getting another paycheck soon…

From my understanding, Yellow missed a healthcare and pension payment to Central States for $50 million July 15 and said they would not be paying the August payment either, so the union threatened to strike because they would be without health insurance. Yellow then sought an injunction to prevent a strike which was rejected, Central States stepped in and gave Yellow some more time to make the payments and extended healthcare coverage for employees in the meantime and the union backed down.

The government also gave Yellow a $700 million loan in return for ~30% of the company that they’re at very high risk of defaulting on…. They’ve paid a whopping $230 (yes, $230, paid June of 2021) and have an outstanding balance of $729.2 million with the loan set to mature in September 2024.

 

[97prizm]

Wow. So now CF, Overnight, and recently Celadon trucking bit the big one.