A Canadian trucking company and affiliates once featured on a popular reality TV show will close after having lost more than $18 million in the past two years.
Trucking companies Tli Cho Landtran along with Ventures West Transport and affiliates are closing down, according to reporting from the CBC.
According to the report, 38 of 43 workers have already been laid off, with five remaining on to assist with the wind down process.
The company issued a statement on the closure on November 29:
The Transport Companies had been experiencing significant losses for several years and were reliant on a small number of contracts, many of which were unprofitable. The Transport Companies recently bid for a major contract was unsuccessful. Without this business, they could not continue to operate without sustaining significant losses. Unfortunately, the decision was made to close the Transport Companies operations and sell their assets consisting mainly of trucks and trailers. We want to thank all the employees and suppliers of the Transport Companies for all your past support.
The trucking companies hauled materials to the diamond mines via the ice road for 10 years.
The two trucking companies have reportedly lost $18.6 million in the past two years. As of October, the company’s debt is approximately $60 million. The company has around $40 million in assets.
Parent company Tlicho Investment Corporation is owned and operated by the Tlicho government. The Tlicho Investment Corporation and other Tlicho entities have provided tens of millions worth of loans to prop up the struggling trucking companies for several years.
The Tlicho Investment Corporation hopes to be granted creditor protection until February, giving them time to sell off company assets.
The Tlicho Investment Corporation has reportedly left around 140 creditors unpaid, leaving many smaller Canadian trucking companies struggling to pay their drivers.