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Yellow declares bankruptcy leading to 30,000 job losses
https://www.whatjobs.com/news/usa/yellow-declares-bankruptcy-leading-to-30000-job-losses
By Hugh Fort in US Employment News, posted August 8, 2023
Yellow, the freight trucking company, has declared bankruptcy three years after receiving a $700 million bailout from the federal government during the pandemic.
The bailout was predicted by the Trump administration to generate profit for the government, but it was not enough to keep the firm in business.
Negotiations between Yellow's management and the Teamsters union, which lasted several months, ended without a resolution.
READ MORE: Trucking giant Yellow’s closure puts 30,000 jobs at risk
As a result, the company ceased operations at the end of last month.
"Profound disappointment"
On Sunday, August 7, Yellow announced it was seeking bankruptcy protection to facilitate an orderly wind-down of its business.
Chief executive Darren Hawkins said: “It is with profound disappointment that Yellow announces that it is closing after nearly 100 years in business.
Yellow filed a so-called Chapter 11 petition in federal bankruptcy court in Delaware.
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The trucking industry has been under significant pressure over the past year due to rising interest rates and increased fuel costs, which have been difficult to pass on to shippers.
Yellow's bankruptcy is a clear indication of the struggles faced by the industry.
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