Celadon Group Inc. is shuffling around executives in an apparent attempt to save a company that seems to have veered off-course. The carrier’s stock value has plunged in the past few years, and now they are facing charges that they may have filed “false or misleading” financial statements to investors.
Recently the carrier announced that it is expecting to post a $10 million operating loss this quarter. Celadon places much of the blame for their financial issues with their attempt to focus more heavily on owner-operators and lease-purchase drivers instead of company drivers.
Such a large quarterly loss was not welcome news to investors who have watched the value of their shares fall from around $25 in May of 2015 to $1.30 this week. But their valuation woes aren’t driven solely by an underperforming bottom line. Investors may also be scared off by allegations that Celadon issued “false or misleading” financial statements for over a year.
Those allegedly crooked financial statements have already spurred at least 16 law firms to issue press releases announcing that they have or will soon file lawsuits against Celadon. Some have expressed interest in participating in a class-action lawsuit against the carrier.
“I am confident the independent audit committee will proceed quickly and thoroughly to investigate the transactions and develop a plan for re-issuing the affected financial statements,” stated the chairman and CEO of Celadon.
To try and get the company back on course, Celadon has announced that the son of its founder, the late Stephen Russell, will be taking a greater role in managing the company.
Jonathan Russell has been named president and COO of the Celadon Group. He has been with Celadon since 2002. Additionally, Celadon has named Douglas Schmidt the new President of Celadon Trucking.
Celadon is currently the 12th largest TL carrier in the US, and according to The Trucker claims that it will place more of an emphasis on company drivers and turn “back to the basics of trucking.”
Source: gobytrucknews, truckinginfo, ibj, overdrive, wsj, ibj, fleetowner
Old man says
How many times has this been tried and has failed?
Ed says
Focusing on lease and owner op? Eventually a bad deal for a lease driver becomes a bad deal for the company. When it costs $1.00/mile to operate a truck and you get paid $1.20 it isn’t hard to see why lease deals die. If enough of them die the company eventually starts to.
Marion D. Hunt says
Lying to drivers is legal. Lying to investers is not. A Class Action is least of their worries. If they are found to have faked the numbers, they are facing prison time. The SEC isn’t as nice as the FMCSA.
Heavy6 says
Celadon sucks, they deserve everything they get.
Brian says
Chickens are coming home to roost. Karma is a b…. I never once considered working for them.
Dedrick Lucas says
Good luck, too late.
Rick says
Worst trucking company I ever worked for by a long shot. What goes around comes around.
Dave says
They hire predators and everyone else. They own Quality Trucks,which takes advantage of people not quite ready to make that kind of move. Outrageous payments ,30 day warranties on beat to death trucks. Setting up these people wanting part of the american dream,to fell. so,they can do it to someone else all over again.
Jasmine Pace says
I totally agree with you I was a employee they screwed over like that and they kept my escrow
Mark says
That’s exactly what they do. Drove for them as a company driver after escaping from Pumpkin Inc, but even as a rookie still learning the ropes, I could talk with the lease O/O’s and immediately realize what a horrible deal the packages were.
I will shed exactly zero tears if the company finally joins all the aspiring drivers they’ve exploited over the years.
Laura Spaulding says
The leasing of old damage equipment is the industry’s standard practices. Anyone signing for a lease to own on a truck with 400k miles needs to take the truck to a dealer to have it checked out first. Possibly you’ll have to spend about $400 out of pocket but after all it’s your long term investment. Examine all the repairs ask other lease owners for their advise and wisdom. Your Ignorance is what the industry is thriving on for survival.
Jay says
30 day warranty is bad??? I bought a 2 yr old truck from Freightliner of San Antonio,the 1st day out my check engine light came on,I called them inmediately,verbally they assured me they would stand behind their “promise” of a trouble free truck,but they didn t….I hope they get their karma one day.
30 days of warranty isn t as bad as that.
Michael E Errickson says
Good left in 2011 when we had to pay for our own ez- pass and get reimbursed company is a scam!!!
Michael E Errickson says
Wanted us dedicated tobacco drivers to use back roads and not quicker toll roads bunch of IDIOTS!!
Davis says
Trash company, time to pay the piper.
Javier Gamez says
They recorded my employment as a “policy violation,” imagine, it takes two days of waiting for a distributor to bring a load within proper weight limits, all because they overloaded it in the first place! So, I asked Celadon that they should double the pay for this load, they pulled the load from me and gave it to another driver, then told me I was done with Celadon! So I unhooked the trlr in the yard and drove home to L.A. from Indiana! Cost me $800 to drive home, because they roadblocked me from going to another company!
Paul Taylor says
They called that a “Company Policy Violation”? Complaining about overweight loads is a legally protected complaint.
Plato Easter says
Just wait until the eld mandate is locked. Then all those O/O will be employees. Does that mean we get to come to the company Christmas party this year?
Iriemonarch says
I’m an o/o and I’ve been on ELD for 3yrs now. I make money and stay out of trouble. I’m a Flatbed driver to boot.
Joetro says
Good for you…
What’s your point?
Greg Wilson says
Worked for them when Steve was still in the C suite. Great man, gave the company to the bean counters and it all went spinning off to la-la land. Going back to basics may be to little to late. Hope the son is half the man his Father was.
sidney allen says
and he is not half the man his father was
Super Trucker says
The entire trucking industry is headed for financial ruin because of predatory competition.. too many folks working below their cost. Unfortunately, there is no shortage of drivers or owner operators will to bid themselves into bankruptcy. Aspiring Owner operator paying 15% interest on that great deal used truck they bought with the sign on with England, Covenant, and unlimited others..When the big firms make more money from financing trucks and “tuition” from training, than hauling freight..There’s a problem..
Iriemonarch says
Amen Ra to that one comrade !!! The broker /middle man nonsense is what eats my goat. Can’t tell you how many times I had to deadhead out of CA because I refused to put cheap freight on my deck.
Babs says
The trucking industry by far, is the most crooked enterprise in the entire US economy. The reason why they are racking in enormous profits is that the Feds and the american public aren’t awared of their ludicrous practices of ripping off the drivers that drive this industry.
It’s going to be a matter of time….
JT says
Is the C in Celadon for CROOKED
what do False inaccurate financial
statements have to do with “Oh it’s the fault of our O/O and lease drivers” They made us do it, oh geez get the shovel someone please!
George Montgomery says
Lease purchase they still owe me about $5,000 and charge me for fuel in States I was never in a bunch of crooks I hope they all go to jail
Bill compton says
Now would be the time to join the Class Action suit /
Lance says
There was a class action law suit last year for this. If he was a o/o he would have gotten a letter from attorney. Like the rest of us did. So I don’t believe this guy is or was a o/o
Arletter Davis says
I never received a letter about the class action suit
Jay Terry says
I considered them back in the 90’s but realized that it was not a driver friendly company. I talked with some drivers down in Larado back then and none gave good reports.
Jennifer FitzG says
Sell-a-Con! Bad.. but Not as bad as Weiner Ent… trucking industry is bad as a whole. Drivers are treated horribly!!! Loved driving a truck..but not the companies….
Kevin says
@ Ed…It costs a $1.00 a mile to operate a truck…Have been an O/O a very long time. In 1980 it costs a $1.07 per mile to just break even, to just break even.
Dawn Stowe says
They are the worst company ever to work for.My husband worked for them for 2 months.Biggest mistake ever.The dm didn’t have a clue how to manage there load boards.My husband was in Cali for 4 days just cause he refused a load so they made him sit.Even though it was suppose to refuse loads company.After he got to Laredo an told them he quit they gave him a load that picked up in Kansas city from Laredo.How much since did that make.Plus didnt even get our last check because Micheal Richmen was a dick an a freaking bully.Worst company ever to drive for
Iriemonarch says
Just like John Q. Public many of us don’t realize the power we have if we organize , unify and obtain a political voice. Those who claim to speak for us don’t and those of us who remain victims are really volunteers to the madness created by these greedy impetuous “slave holders” !!!
Buckskin says
I was kind of wondering that myself how come you never hear the main stream media ever talk or do stories about trucking how drivers are abused and outrageously overregulated and what they have to put up with
Thomas Kirkpatrick says
Made it through 1 day of their orientation, and walked out.
Amanda Saxon says
I hope they go down!!! my husband worked as hard as he could 15 weeks of employment and received 9 checks for 0.00. They didn’t even care.
ZEE says
It has been shown that the average annual cost of operating a tractor trailer for one year is approximately $180,000 per year or $1.38 per mile, depending on the number of miles the truck drives in one year. The cost of fuel is the number one largest cost associated with driving a tractor trailer.
From: OOIDA/2011….. much higher now.
phillylou says
I was only dumb enough to drive company for celadon not lease. .when it came time to pay out our yr end bonuses 2wks before Christmas we were told the bonus program discontinue
GladToBeGone says
So, yeah. I worked there and watched Eric Meek and Paul their friends and family wreck the place the whole time pretending they were A+ management. They had no idea the driver families and drivers lives they were wrecking in pursuit of self enrichment. Year two of my employment I had seen enough and realized that the place was pure evil. Stay away.
Chucky says
I’m the one who got Richard Swanson to file the rebate suit,there is a larger scam than that going.Suit was settled in may,money should be disbursed by end of 2017 beginning of 2018.By the way look up MARK HAZELWOOD TRIAL/MARK THE DRIVER.Notice the 2 ATA members in the meeting.