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Accounting Fraud & Freight Recession Topple Celadon, Largest Truckload-Carrier Bankruptcy in US History

Creditors trying to repossess trucks over the weekend. Thousands of drivers on the road, some stranded. Employees left in the dark. Shares plunge 93% this morning from nearly nothing to practically nothing.

By Wolf Richter | 9 December 2019

WOLF STREET — Celadon Group, one of the larger full-truckload operators in the US with about 3,000 drivers and about 2,700 tractors, said today – confirming days of rumors – that it filed for Chapter 11 bankruptcy and is ceasing operations. This is the largest truckload carrier ever to file for bankruptcy in US history.

The drivers, hauling loads across the US, Canada, and Mexico were apparently among the last to be informed. According to Freight Waves, they received this message in the middle of the night on their telematics devices:

“Fleetwide message: We regret to inform everyone that Celadon Group, Inc. has filed for a Chapter 11 Bankruptcy. We will continue to haul and deliver all loads that we now have in transit. We will have more information in the morning as to where equipment needs to be returned to.

We have been assured that everyone who follows instructions will be paid for the work and miles assigned and completed, and Celadon will not leave anyone stranded away from home. Finally, we truly appreciate your commitment and dedication to this company, and wish you all luck moving forward. Celadon Management.”

Other employees were told to attend a meeting this morning at the headquarters in Indianapolis.  Celadon said its North Carolina-based Taylor Express would continue to operate.

The company’s shares [CGIP] plunged 93% this morning from nearly nothing (41 cents on Friday) to practically nothing (2.7 cents) at the moment. The stock had been delisted from the NYSE last year and is trading over the counter. […]

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1 Comment on Accounting Fraud & Freight Recession Topple Celadon, Largest Truckload-Carrier Bankruptcy in US History

  1. “This was not supposed to happen. November was supposed to be the second month in what would be the upturn from the historic collapse in 2019 for orders of heavy trucks. Orders in 2019 had plunged by as much as 80% from a year earlier. That collapse in orders followed a historic boom in orders in 2018. But in October, orders had bounced, and though still down by 48% from a year earlier, it was a big move. So November was supposed to power the second step of the upcycle. And instead, orders plunged again.”

    I think we all know what is coming, and why Trump will be re-elected to take the blame.
    https://wolfstreet.com/2019/12/04/trucking-thrives-on-stability-but-were-now-on-a-rocky-road/

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