Teamsters Says US Trucking Firm Yellow Notifies It of Shutdown, Bankruptcy
"Yellow has historically proven that it could not manage itself despite billions of dollars in worker concessions and hundreds of millions in bailout funding from the federal government," Teamsters General President Sean M. O’Brien said in a statement.
Yellow did not immediately respond to a Reuters' request for comment.
Earlier in the day, The Wall Street Journal reported about the closure of the trucking firm's operations which cited notices sent to customers and employees. Last week, WSJ also reported that the company has laid off a large number of workers.
Earlier this month Yellow averted a threatened strike by 22,000 Teamsters-represented workers, saying the company will pay the more than $50 million it owed in worker benefits and pension accruals.
The company said on Thursday it is exploring opportunities to divest its third-party logistics company Yellow Logistics Inc. and is engaged with multiple interested parties.
Its customers include large retailers like Walmart WMT.N and Home Depot, manufacturers and Uber Freight, some of which have paused cargo shipments to the company for fear those goods could be lost or stranded if the carrier went bankrupt.
In 2020, the Donald Trump-led government rescued the company with a $700 million pandemic relief loan in exchange for a 30% stake.