Yet another company on the bankruptcy pile. :( Consolidated Freightways files for bankruptcy

[Freejack2]

Consolidated Freightways files for bankruptcy
Venerable trucking firm sets as many as 15,500 job cuts

ASSOCIATED PRESS

VANCOUVER, Wash., Sept. 2 ? Consolidated Freightways Corp., a 73-year-old trucking company, said Monday it was filing for Chapter 11 bankruptcy protection and laying off as many as 15,500 people around the country.
THE COMPANY?S STOCK had tumbled since it requested an extension in filing its second-quarter earnings two weeks ago and announced that it might be de-listed from the Nasdaq stock market.
In letters being mailed to workers Tuesday, the company said it simply didn?t have enough money to continue operations.
?We expected that recent discussions with our banks, other lenders and real estate investors would enable us to obtain significant additional financial resources,? the letters said. ?Unfortunately, this has not been the case.?
Hundreds of workers had shown up for work at Consolidated Freightways offices Monday, only to find the offices locked. In a recorded telephone message, Chief Executive John Brincko told them not to show up Tuesday.
About 15,500 workers would be affected, the company said, with more than 80 percent receiving termination notices immediately.
The company said it planned to file for bankruptcy protection Tuesday.
Operations of the company?s CF AirFreight and Canadian Freightways Ltd. subsidiaries would continue normally without layoffs.
?I knew it was coming, but it crept up on me faster than I wanted it to,? said James Onley, 62, a Rockford, Ill.-based driver who has been with the company for 22 years. ?It?s gonna hurt me, but I?ll make it. It puts a little crimp in our finances is all.?
Consolidated Freightways files for bankruptcy

 

[Evadman]

Ow.

 

[Tripleshot]

CF is bankrupt, but what I find troubling is, when trucking companies like this one go belly up, that usually means manufacturing has ground to a halt. CF hauled lots of auto parts, and much "just-in-time" dry freight. Thay also used the railways to piggy back trailers on rail cars to get the freight to local terminals scattered all over the Us and Canada. They had terminals at all border crossings.

Labor was teamsters. But I do not think labor drove them under. This smells like another mismanaged company and the people at the top are not getting hurt at all. Just 15,500+ laid off in the morning.

When the stock market opens in the morning, watch closely. This will not go un noticed on wall street.