The Comcar bankruptcy was among the largest in the U.S. trucking industry in recent memory. At the time of filing, in May 2020, the company had over 4,000 trucks and more than 40 terminals. Ultimately, the company found itself overburdened with debt, while sustaining heavy losses.
Who bought Comcar Industries?
TFI International
TFI International is acquiring “substantially all the assets” of Comcar subsidiaries MCT Transportation and CT Transportation, according to two press releases Monday. TFI paid $9.6 million for acquired MCT Transportation assets, including accounts receivable, and $2.8 million for two real estate properties.
What trucking companies went out of business in 2020?
On May 17, the $800 billion saw its first major bankruptcy of 2020: Comcar, a holding company for four trucking transport companies and one truck repair and parts distribution firm. Comcar announced Sunday that it would sell off all five of its national transportation companies in its Chapter 11 filing.
What trucking company files Chapter 11?
Gainco Inc., headquartered in Portland, Texas, filed its petition in the U.S. Bankruptcy Court for the Southern District of Texas on Friday.
Why trucking companies are closing?
Results of a softer freight market, broad effects of tariffs on imported goods, trade tensions and the ongoing driver shortage are currently sharing blame. In the first half of 2019, 640 freight companies shut down, and that number is expected to continue into 2020. In all of 2018, 310 trucking companies closed down.
What did Celadon transport?
Celadon began transporting automotive freight for Chrysler between Mexico and Michigan. The company began operations with 50 leased tractors and 100 leased trailers. Even with a giant like Chrysler as its main customer, earnings were slim. From 1985 to 2001, the company had negative retained earnings.
Is commercial carrier still in business?
Privately held Comcar was founded in 1953 as Commercial Carrier Corp. and was last sold in 2016. The company said at the time it was one of the largest privately owned companies in the transportation industry.
Why are trucking companies going out of business?
The COVID-19 pandemic forced more than 3,000 trucking companies out of business in 2020 — a significant leap from about 1,000 the year prior — as the early months of the global health crisis proved too difficult for some in the industry to withstand.
Is the trucking industry failing?
U.S. trucking company failures nearly tripled in 2020 from the previous year as fallout from the pandemic deepened pressure on smaller operators while well-capitalized bigger truckers held on and found stronger financial footing as the economy reopened.
