A Florida-based parent company announced this week that it will file for bankruptcy and sell off five company subsidiaries.
On Sunday, May 17, Comcar Industries Inc. announced they had filed Chapter 11 protection with the intent of selling off operating companies.
The company operates 4,000 trucks and employs 4,500 workers.
Comcar says that they expect to conduct business as usual during the bankruptcy proceeding.
Per a series of separate agreements:
- CT Transportation LLC will be sold to PS Logistics LLC.
- CTL Transportation LLC will be sold to Service Transport, Inc.
- MCT Transportation LLC will be sold to White Willow Holdings.
Comcar says that they have entered into a letter of intent to sell CCC and CTTS Repair. Comcar did not disclose the name of the buyers in these agreements.
“Our decision to file Chapter 11 was to better enable us to find homes for our customers, people and assets. Prior to this decision, we worked diligently to find a solution that would reduce our debt, enhance our liquidity and best position all Comcar holdings for the future. After evaluating options to address our capital structure and conducting extensive negotiations, we determined that a sale of all companies would be the best path forward to maximize their value,” according to the Comcar senior management team. “We are proud that we have found excellent future owners as each division is being purchased and will be managed by strong and reputable operators upon their respective sales. Further, this process will allow our companies to continue operating in the ordinary course of business while the sales process for each one continues. We believe this will best maintain opportunities for our people, continue to serve our customers and maintain vendor relationships.”
Comcar President and CEO Randy Clark passed away unexpectedly on April 5, 2020.
Comcar was founded in 1953 and was acquired by private investment in 2016.