If you want the real deal about how truckers feel about any industry-related subject, there are a whole bunch of blogs, websites and the like where they post their opinions. One of the best ones is TruckingTruth.com., started by Brett Aquila, a 15-year driving veteran, in 2007. He has encouraged American Trucker to include comments by his members so that word spreads.
Currently the Celadon Group Inc. situation is front and center on TruckingTruth.com, following the stunning and unexpected news that the Indianapolis-based truckload carrier, No. 27 on the 2019 Fleet Owner 500 list of the largest for-hire carriers in the United States and Canada, filed for Chapter 11 bankruptcy protection and was shutting down all of its business operations as of Dec. 9.
It left 3,800 workers unemployed, with up to 2,500 drivers on the road trying to figure out how to get home at the time of the announcement. The 1,300 office employees lost all accrued vacation time and their health and dental benefits were suspended as of midnight on Dec. 8, according to Business Insider.
Truckers had these things to say:
• Crazy. Right before Christmas too. I truly feel bad for their drivers and office staff.
• When (Celadon founder) Steve Russell passed, the upper management went crazy and it led to the SEC investigation and fines. They never really recovered, and the mismanagement continued. It's a shame too because I met Mr. Russell on several occasions when I worked for freightliner and he truly was a great individual.
• Well history repeats itself. Four years ago the CEO ran off on Christmas Eve after he knew he was fixing to be charged. They have tried to recover, but I guess they really haven’t. It is a shame; they were one of the companies on a fast track.
• Lease ops are going to get screwed more. Most lease contracts i have seen have a "completion bonus" made up of money they put in over the years. Trucks belong to the bank. If lease terminated, no bonus given. Prime lease completion is as high as $36k of YOUR money they took over the lease. Celadon leasees have no way to recover that money.
• (answering previous post). Lease ops may come out okay. Celadon started a leasing company many years ago (Quality Companies) as a third-party leasing agent. When they went through their problems four years ago they sold off the majority of the leasing company. Any escrow accounts should be held by Quality Companies not Celadon.
• (answering previous post). I certainly hope they are okay, but personally I think it extremely doubtful. They are independent contractors. In a bankruptcy situation they will be unsecured creditors, as will the holding company who holds the leases. It would take a serious miracle for any of the unsecured creditors to get paid in this situation. Even the secured creditors will only receive pennies on the dollar of what they're owed. There's insufficient cash to go around now. That problem immediately grows exponentially now that creditors have cut them off and business slams to a halt. It's lights out. Nobody gets paid but the attorneys.
• For a second there it looked like Celadon was making a comeback. They had scored a huge contract with Walmart, and were hauling their milk out of their Fort Wayne plant. Crazy how many companies are going under at the moment. Way more than the ones that are making the news.
• So this chapter 11 bankruptcy, does that mean that they can’t come back and be reborn again with a new set up of management and dispatchers and drivers? It would be nice to see this company make a comeback.
• (answering previous post). Chapter 11 is a "reorganization" which means their intention is to continue company operations. Chapter 7 bankruptcy is a "liquidation" meaning they intend to sell the company assets, pay off creditors, and then cease existence. Chapter 11 can be "converted" to a Chapter 7 either by the debtor or the creditors.
• This is far different from other companies going out of business. This one is fully due to crimes committed by the upper management at the expense of the company and employees. This company did not go under from lack of work or simple poor management. This was criminal acts committed by the top leaders. They focused on 3 former execs, but there is probably more to the story. In any case it is a very sad day for almost 4,000 employees due to the greed of a very few.
