US trucking company Yellow Corp has ceased operations and is filing for bankruptcy after failing to reorganize and refinance over a billion dollars in debt, the Wall Street Journal (WSJ) has reported, citing a statement from the Teamsters union.
Earlier this month Yellow, formerly called YRC Worldwide, averted a threatened strike by 22,000 Teamsters-represented workers and last week it said it was exploring opportunities to divest its third-party logistics company.
The 99-year-old company is the third-biggest US trucker specializing in the less-than-truckload segment that combines shipments from different customers in the same trailer. Its customers included large retailers like Walmart and Home Depot and Uber Freight.
The company said in June that the Teamsters union was blocking restructuring and modernization efforts, which it said were critical for Yellow's survival and ability to refinance about $1.3 billion of debt due to be repaid by 2024.
Part of that debt is a $700 million pandemic relief loan provided in 2020 by the Donald Trump-led US government in exchange for a 30% stake in the Nashville, Tennessee-based company, the WSJ said.
The newspaper had earlier reported the closure of the trucking firm's operations, citing notices sent to customers and employees. On Friday, the WSJ also reported that the company has laid off a large number of non-union workers.