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A MAJOR trucking company in the Midwest has filed for bankruptcy, affecting the jobs of its 255 drivers.
Based in Strafford, Missouri, RBX Inc. has been in business for more than 40 years and transports freight in 265 trucks across the Midwest and Southeast.
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The family-owned company has filed for Chapter 11 bankruptcy, but no reason was given for the move, according to supply chain intelligence platform FreightWaves.
A Chapter 11 bankruptcy gives debtors an opportunity to reorganize their company to keep the business going, according to the United States Courts website.
It reports that up to 199 creditors are affected, but there is no indication of how much money they are owed.
Assets are listed as being up to $50,000 and liabilities between $10 million and $50 million.
Funds will not be available for unsecured creditors, the platform reports.
According to the RBX website, the company has more than 200 power units and a 53-foot dry van trailer fleet.
The company was set up in 1983 and the current CEO is Jim Keltner.
It filed for Chapter 11 bankruptcy on Friday December 13 in the U.S. Bankruptcy Court for the Western District of Missouri.
TRUCK LOAD OF TROUBLE
This is just the latest in a series of high-profile trucking bankruptcies in recent years.
Yellow, which was founded in 1924 and was one of the largest freight companies in the US, filed for Chapter 11 in August 2023.
It had around $2.5 billion of debt and at the time, 30,000 employees.
As reported in the US Sun at the time, Yellow CEO Darren Hawkins said: “It is with profound disappointment that Yellow announces that it is closing after nearly 100 years in business.”
He added: “For generations, Yellow provided hundreds of thousands of Americans with solid, good-paying jobs and fulfilling careers.”
A month later in September 2023, Elmer Buchta Trucking LLC, owner Transport Acquisitions LLC, and three other affiliates filed for Chapter 11 bankruptcy in Indiana.
How does bankruptcy work?
Bankruptcy is a specific legal process that helps companies eliminate debt they can’t repay.
The process allows businesses to start fresh and gain access to new credit.
Supervised by federal courts, bankruptcies allow a company to sell off its assets more easily to pay off creditors, according to Investopedia.
Chapter 11, a common process for companies, is used to restructure a business with the goal of remaining open – even if it means selling off most of the company’s properties.
Chapter 7, on the other hand, sells all of a company’s assets, putting it out of business.
Chapter 15, alternatively, allows for collaboration between American and foreign courts to conduct bankruptcy proceedings with “parties of interest involving more than one country,” per the United States Courts.
Based in Evansville, Elmer Buchta was the largest bulk hauler in Indiana with more than 300 units.
It had been operating for more than 80 years and had assets of between $1 million and $10 million, while its liabilities were $10 million to $50 million, according to the bankruptcy petition filing.
RETAIL CASUALTIES
The freight trade isn’t the only sector that has seen bankruptcies in recent years, with retail also badly affected.
Bed Bath & Beyond filed for Chapter 11 bankruptcy in April 2023, closing all of its 360 stores.
The company was then bought by Overstock which relaunched its website – BedBathandBeyond.com – in August that year.
Discount chain Tuesday Morning also closed its 200 stores after filing for Chapter 11 bankruptcy in February 2023.
It had previously filed for bankruptcy during the coronavirus pandemic in May 2020 and had unsuccessfully attempted to keep going by shuttering a number of locations.
