One of the nation’s largest LTL carriers officially ceased operations on Sunday, leaving tens of thousands of workers without jobs.
Nashville-headquartered Yellow Corp. officially ceased operations at noon on Sunday, July 30, after 99 years in operation.
The news of Yellow’s end of operations was confirmed by the International Brotherhood of Teamsters (IBT) on Monday morning. IBT confirmed that they were served legal notice that the trucking company had ceased operating and is filing for bankruptcy.
The bankruptcy filing is expected by July 31, according to CNN.
Yellow employed about 30,000 workers. Approximately 22,000 of those workers were represented by IBT.
“Today’s news is unfortunate but not surprising. 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. This is a sad day for workers and the American freight industry,” said Teamsters General President Sean M. O’Brien.
On July 23, the Teamsters announced that Yellow had averted a looming strike by making an agreement with the Central States Pension Fund that afforded the company a 30 day grace period after the company withheld pension and healthcare payments totaling $50 million on July 15.
“Agreement by the Central States at the urging of the Teamsters gives Yellow 30 days to pay its bills with the understanding the company will do so within the next two weeks,” the Teamsters said.
In 2020, Yellow was the recipient of $700 million in COVID-19 relief funding, giving the federal government a 30% stake in the company. Yellow has struggled to repay that loan.
Yellow Transit Freight Lines, the company that would become Yellow, was established in 1924 in Oklahoma City by brothers Cleve and A.J. Harrell.