Freight bankruptcies pile up as carriers, logistics corporations search court docket safety 

Why it issues: The most recent chapter filings present monetary strain persevering with to work by means of the freight economic system, with each small carriers and bigger logistics and distribution firms confronting debt hundreds, skinny asset bases and restructuring challenges.

A wave of chapter filings swept by means of the freight and logistics sector from late July by means of Aug. 25, hitting trucking firms, freight forwarders, distributors, warehouses and different supply-chain companies throughout the U.S.

At the very least 21 transportation and logistics-related firms included in chapter filings reviewed by BigRig sought Chapter 7 liquidation or Chapter 11 safety in the course of the interval.

The businesses vary from single-truck carriers to nationwide distributors with a whole bunch of hundreds of thousands of {dollars} in belongings and liabilities.

The filings underscore how monetary hardship stays uneven throughout the freight economic system, with small trucking firms struggling alongside bigger logistics and distribution companies.

Among the many largest was BFG Provide Co. LLC, an Indianapolis-based horticultural and agricultural provide distributor that filed for Chapter 11 safety Aug. 18 in Delaware. The corporate estimated each belongings and liabilities between $100 million and $500 million and reported greater than 100,000 collectors.

BFG operates a nationwide community of 15 warehouses carrying greater than 100,000 SKUs from over 1,000 producers. The corporate had roughly 454 staff as of April, in keeping with info compiled with the chapter submitting.

A number of of the filings concerned trucking firms with solely a handful of energy models.

Anchor South Transport LLC, an Albertville, Alabama-based service with 14 vans and 12 drivers, filed for Chapter 11 safety July 28. The service reported almost $1.4 million in belongings in opposition to roughly $2.2 million in liabilities, with banks and different monetary establishments holding secured claims in opposition to gear.

Courtroom schedules put Anchor South’s belongings at $1.396 million, together with greater than $1.1 million in equipment, gear and autos.

Black Lion Transportation and Truck Repairs LLC of Peachtree Corners, Georgia, filed for Chapter 11 chapter July 29. The corporate estimated each belongings and liabilities between $100,001 and $500,000 and elected to proceed beneath Subchapter V, a streamlined Chapter 11 course of for qualifying small companies.

Black Lion Transportation and Truck Repairs’ creditor checklist contains Renasant Financial institution, which held claims tied to a 2023 Peterbilt 579 and two 2023 Nice Dane trailers. The submitting additionally lists tax, toll and different enterprise money owed.

Kings of the Highway Transport LLC, primarily based in Sanford, Florida, filed for Chapter 7 liquidation July 28. Courtroom schedules present simply $77,000 in belongings — all equipment, gear and autos — in opposition to $393,380 in liabilities.

One other notable trucking chapter got here from Stoneman Trucking LLC of Breckenridge, Michigan, which filed for Chapter 11 safety Aug. 11. The corporate elected Subchapter V remedy. Its schedules checklist about $1.03 million in belongings in opposition to $892,187 in liabilities, together with $774,000 in secured claims and $118,187 in nonpriority unsecured claims.

PLR Transport Inc. of Pembroke Pines, Florida, introduced one of many sharpest asset-to-debt imbalances among the many trucking filings. The service filed Chapter 7 on Aug. 21 with simply $21,520 in belongings and almost $5.33 million in liabilities, together with greater than $5.25 million in nonpriority unsecured claims.

PJM Distributors LLC of North Miami Seaside, Florida, additionally filed Chapter 7, on Aug. 12. Its schedules checklist $125,086.94 in belongings and $464,342.13 in liabilities. The corporate advised the court docket that after administrative bills are paid, no funds are anticipated to stay for unsecured collectors.

Different small carriers in search of liquidation included Aneiro’s Trucking LLC of Moreno Valley, California; R3 Hauling LLC of Northbrook, Illinois; AP Freight Inc. of Lake Zurich, Illinois; and DD Freight Specific Inc. within the Chicago space.

Aneiro’s, which has six vans and 6 drivers, listed belongings of as much as $100,000 and liabilities between $100,001 and $1 million. R3 Hauling, a one-truck service, reported the identical asset and legal responsibility ranges, whereas one-truck AP Freight reported each belongings and liabilities of not more than $100,000.

DD Freight Specific filed Chapter 7 on July 27. The service beforehand reported 40 energy models and 40 drivers in federal information, though its chapter submitting listed eight tractors amongst its owned belongings. The corporate reported no less than $223,000 in belongings and solely $2,930 in liabilities.

Monetary stress reaches freight forwarding, warehousing

The filings prolonged effectively past motor carriers.

Jet-Pace Logistics (USA) LLC, a global freight forwarder and customs dealer, filed Chapter 11 in Illinois on Aug. 25. The corporate estimated belongings of $50,000 to $100,000 and liabilities between $1 million and $10 million, with between 200 and 999 collectors.

Jet-Pace continues to offer worldwide freight forwarding and customs brokerage providers and operates as a licensed non-vessel working widespread service beneath the Jet-Pace Ocean Line identify.

Inclusive Logistics LLC, an El Paso, Texas-based cross-border logistics supplier, filed Chapter 11 on Aug. 8 with estimated belongings and liabilities of $1 million to $10 million and between 50 and 99 collectors.

The corporate operates two warehouse amenities totaling about 113,000 sq. ft and gives overseas commerce zone, customs and ocean transportation middleman providers alongside the U.S.-Mexico commerce hall.

Royal Chilly Storage Inc., a Beverly Hills, California-based refrigerated warehousing supplier, filed Chapter 11 on Aug. 25. It listed each belongings and liabilities under $50,000 and between one and 49 collectors. The corporate traditionally operated a 118,000-square-foot facility with capability for 14,500 pallet positions.

Different Chapter 11 filings included America Enterprice LLC, a long-distance truckload service in Zuni, Virginia; Nice Southern Copackers LLC, a beverage contract producer in Lakeland, Florida; Emil’s Produce Corp., a Brooklyn produce wholesaler; NJS Companions Inc., a New York seafood wholesaler; ML Imports Inc., a New Jersey shopper items distributor; and The Energy of Peek Trucking Firm LLC of Lithonia, Georgia.

ML Imports’ submitting adopted substantial litigation. The corporate’s compiled information point out it had been hit by court-ordered disgorgements stemming from litigation over diverted company alternatives and trademark infringement. The enterprise listed each belongings and liabilities between $1 million and $10 million.

The Energy of Peek, in the meantime, operates simply two vans and filed Chapter 11 with estimated belongings between $500,000 and $1 million and liabilities between $100,000 and $500,000.

Chapter filings, July 27-Aug. 25

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