Floyd & Beasley shuts down

I just want to point out the fact that this is a non-union company for all of the union haters that like to troll on here.

 

lol, but skinny, you just know the unions were in on it somehow!!!.....

 

Being from Talladega county, I know many people who worked there and it affected some close friends. The paper mill in Childersburg, AL, owed them a lot of money and escaped under bankruptcy protection. The paper mill, Kimberly Clarke, changed hands a couple of times after that and is now just a shell of it's former glory. I feel for the people who lost their job... Another familly owned company succombing to the lousy economy.

 

What a shame. Its amazing how many small companies are put out due the big boys not paying their bills. I am chasing money constantly right now. It sucks.

 

Why would they let them get to owe them that much money. If you aint paying I aint moving your freight. Maybe some other small company will see this and quit being banks and start being trucking companies agian.

 

Always sad to see one of the old companies go out, those orange trucks have been a common sight on the roads for years. Good luck to all who are affected by this.

 

You can't bam bam. You can't just cut off your largest customer. When you do this your bus. relationship changes for the worst. The obligation that "I owe you" changes to I'll catch you later cause I need a new carrier now. It's like you're my hero for carrying me through hard times and you're my ***** for cutting me off. A no win.

And companies wrestle daily for that line in the sand..... how deep do we go? How long do I carry them? When is enough enough?

 

Also realize, Bama, that when you get into bigger companies (aka more than, like, 3 guys working together) most everything is done on short term credit. It's called commercial paper. I get a loan to pay for x at the beginning of the day, then by the end of the day I've got the revenue to pay the loan back.

Now, trucking companies and their customers may or may not be using the commercial paper, per se, but they are doing a blend of prepaid service, haul now, pay later, and regular contract stuff. And with the size of big contracts? Hoo, one month of, "Hey can we wait to pay you for a couple of weeks?" that turns into a never-paid-bill can sink a hauler in a hurry.

 

Plus, a lot of companies invoice on terms of 2%-10/Net-30 - meaning that the company being billed can deduct 2% off of the amount due if they pay within 10 days after receipt, otherwise the entire amount is due within 30 days, and there's usually an additional 15-day grace period before the accounts receivable department starts inquiring about payment being made.

A major shipping company (Kimberly-Clark) can amass a substantial amount of debt to a smaller company within a 45-day period. If the larger company files for bankruptcy - or re-organization under the bankruptcy laws - it can be 3 months or more before the bankruptcy trustee begins to settle with the creditors and get them paid - and the creditors usually have to accept pennies on the dollar.

There's an old saying about banking that also applies to the relationship between the large companies and the small companies they do business with -- When you owe the bank a hundred thousand dollars, the bank tells you how it's going to be. When you owe the bank a hundred million dollars, you tell the bank how it's going to be!