Yellow Trucking Company Files for Bankruptcy After Receiving $700 Million Pandemic Bailout

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Yellow, a nearly 100-year-old trucking company that received a $700 million bailout during the pandemic, has filed for bankruptcy amid fruitless union negotiations and over $1 billion in debt.

during the pandemic, has filed for bankruptcy amid fruitless union negotiations and over $1 billion in debt.

The Chapter 11 protection, filed in U.S. Bankruptcy Court in Delaware on Sunday, comes a week after the beleaguered trucking company — once one of the U.S.' largest transporters of goods — . The company's shutdown will eliminate 30,000 jobs, 22,000 of which are held by members of the International Brotherhood of Teamsters.

"It is with profound disappointment that Yellow announces that it is closing after nearly 100 years in business," Chief Executive Darren Hawkins said in a $700 million government loan during the pandemic, as part of the COVID-19 relief program in 2020. Even so, its financial challenges continued to snowball, leading it to accumulate more than $1 billion in debt.

"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," said Teamsters General President Sean M. O'Brien in statement

 

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