Yellow Trucking Company Files for Bankruptcy in 2025 Amid $1.3B Debt and Union Dispute
Facing $1.3 billion in debt and ongoing union conflicts, Yellow trucking company ceases operations and files for bankruptcy in 2025, impacting thousands of workers.
Yellow, one of the largest less-than-truckload (LTL) carriers in the U.S., has announced the closure of its operations and filed for bankruptcy in 2024. The decision follows mounting financial pressure and a prolonged labor dispute with the Teamsters Union.
Highlights
- Yellow is shutting down amid a $1.3 billion debt load due next year.
- The company faced resistance from the Teamsters Union over restructuring plans affecting nearly 1,000 employees.
- Closure results in approximately 30,000 job losses across the country.
As the third-largest LTL carrier and fifth-largest transport company nationwide, Yellow struggled to refinance $1.3 billion in debt, including a $567.4 million term loan and a $729.4 million U.S. Treasury loan both maturing in 2024. The Treasury loan was part of pandemic relief, granting the government a 30% stake in the company.
Despite repaying $230 million of principal and $54.8 million in interest by March 2024, financial pressures remained intense. Yellow's restructuring initiative, "One Yellow," aimed to unify regional networks but faced strong opposition from the union due to changes in wages and job roles.
Legal battles ensued, with Yellow suing the Teamsters in June 2024 over alleged interference with restructuring efforts. Although Yellow lost the lawsuit, it temporarily avoided a strike earlier this year.
Additionally, Yellow explored selling its logistics division, Yellow Logistics, engaging with potential buyers as part of its efforts to stabilize operations.
This development marks a significant shift in the U.S. trucking industry, highlighting the challenges of debt management and labor relations in a critical sector of the national supply chain.
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