Yellow, a major U.S. trucking company that previously received a $700 million federal pandemic loan, is reportedly shutting down, which could result in the largest trucking bankruptcy in U.S. history.

Unexpected Shutdown: Yellow has reportedly shut down and is expected to file for bankruptcy after laying off employees at all locations.
* Internal notices sent to customers and employees reportedly indicated the shutdown.
* Yellow has not publicly announced any plans for bankruptcy or a potential shutdown.

Employee Impact: Yellow’s shutdown could impact its 30,000 employees.
* The Teamsters union, which represents Yellow’s 22,000 unionized workers, advised Yellow employees to prepare for the worst.

Financial Troubles and Union Strife: Yellow’s troubles follow a recent exodus of customers amid union struggles and years of financial difficulties.
* Following a threat of a Teamsters strike, Yellow’s freight volumes fell 80% in a week.
* A $50 million benefits payment missed by Yellow triggered the strike threat.
* Yellow has $1.3 billion in loan debt due in fall 2024, $729 million of which is owed to the federal government.

Past Mistakes and Future Implications: Yellow received a $700 million loan from the government in 2020 as part of a COVID-19 rescue package, but a congressional probe found that the disbursement was a mistake.
* If the company folds, it could lead to the loss of 30,000 jobs. However, other freight carriers may absorb Yellow’s business.
* Retailers and manufacturers are likely to see higher shipping rates if Yellow folds, as Yellow is known for its low shipping rates compared to its rivals.

View original article on NPR

This summary was created by an AI system. The use of this summary is subject to our Terms of Service.