Celadon Bankruptcy Filing Catches Truck Drivers Off Guard
On Monday, December 9, 2019, Celadon Group Inc, North America’s largest provider of international truckload services,filed for Chapter 11 bankruptcy protection. This came after the company’s former president and chief operating officer, William Meek, and its former chief financial officer, Bobby Lee Peavler, were indicted on conspiracy and other charges.
With this move, Celadon ceased all operations and cut almost 4,000 jobs, including nearly 3,000 truck drivers. Celadon had an estimated $611 million in revenue so far for 2019 and this is the largest truckload bankruptcy in memory. The company asked its truck drivers to deliver loads currently in transit, then hand over the company’s trucks. Some truck drivers were directed to the nearest Celadon terminal.
News of Celadon’s bankruptcy filing caught its truck drivers by surprise and there were concerns about some being stranded far from home. Not only have these truck drivers lost jobs during the holiday season, but they also were informed that they’ve lost health insurance and won’t be paid for unused vacation time. Celadon truck driver employees will, however, qualify for unemployment pay.
The good news, if there is any, is that remaining trucking companies easily should absorb the shock. A Facebook group has been established to assist CDL truck drivers and other employees with any issues they may have, from filing for unemployment and COBRA to where to drop off a truck. Reportedly, there are plenty of carriers to fill the demand for Celadon’s for-hire truckload business. In the broader truckload market, there are still more loads than truck drivers. The company handles cross border freight between Mexico and the United States. Truck drivers will likely have work opportunities with shippers which pick up where Celadon left off. Truck driver recruiters and other trucking companies have already begun reaching out to Celadon’s drivers.