- The trucking giant Celadon declared bankruptcy on Monday, according to federal filings.
- It’s poised to be the largest truckload bankruptcy in history, according to FreightWaves, which broke the story on Friday from internal sources.
- The bankruptcy has the potential to leave more than 2,500 truck drivers stranded away from home.
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The trucking “bloodbath” of 2019 is ending on a remarkably sour note.
Indianapolis-based Celadon, a truckload carrier that grossed $1 billion as recently as 2015, filed for bankruptcy on Dec. 9. It’s poised to be the largest truckload bankruptcy in history, leading industry publication FreightWaves reported on Friday.
And the company’s drivers are already getting slammed.
The bankruptcy has the potential to leave nearly 3,000 truck drivers stranded away from home. Celadon employs 2,500 truck drivers, and works with 380 owner-operators.
It also leaves some 1,300 administrative employees, most of whom work in Celadon's Indianapolis headquarters, jobless right before the holidays.
According to a federal filing, Celadon owes its total 3,800 employees around $3.9 million in unpaid wages, along with more than $1 million in termination bonuses. The termination payment works out to about $267 per worker.
Sources told Business Insider that Celadon truck drivers' Comdata fuel cards were already being turned off, leaving them unable to get home without spending serious cash on gas or arranging their own transport by car, plane, or bus. Some have seen their fuel cards turned on again.
It costs around $400 to $600 to refuel a semitruck. As long-haul truck drivers earn a median annual income of $43,680, it's a considerable amount of money to front.
Numerous Facebook groups, including Celadon Closure Assistance and Jobs, have been set up to help stranded Celadon truck drivers connect. Celadon did not immediately respond to a Business Insider request for comment.
2019 has been a challenging year for truck drivers and their employers. About 640 trucking companies went bankrupt in the first half of the year, according to industry data from Broughton Capital LLC. That's more than triple the roughly 175 bankruptcies from the same period last year.
ACT Research has said America's $800 billion trucking market entered a recession early this year. Freight volumes have declined for 11 straight months. Manufacturing, which tracks the trucking industry, has contracted for four straight months.
Read more: Another 1,000 truck drivers lost their jobs in November, and it's a chilling sign for the economy
The source of Celadon's troubles dates back further, however. On Thursday, the Securities and Exchange Commission charged two former Celadon executives following a multiyear accounting scandal.
The news plunged Celadon's stock to $0.41 a share on Friday - a considerable tumble from the more than $20 a share that the stock was worth in 2015 before the accounting scandal became public knowledge. As of Monday, share prices are at $0.03.
Are you a Celadon truck driver who is at risk for being stranded? Email [email protected].
Read more about the trucking recession of 2019:
Truckers are becoming more and more pessimistic about the US economy
'I don't know how long I can stay in business': Truckers' fears have soared to recession-level highs
And read the initial bankruptcy filling here
