A report issued by The Wall Street Journal claims that at the start of this year, Pilot Flying J was $4 Billion in debt. The previous year they had only accrued about half as much debt. For a company with an estimated $442 Million in profits per year, it seems odd that it would be possible could rack up an extra $2 Billion in debt in just one year. Sure, they’ve been expanding, buying up new lots and building new travel centers, but a major reason that Pilot Flying J’s debt increased so dramatically is that it made two payments to its owners last year totaling around $1.7 Billion.
According to PFJ spokeswoman Lauren Christ, the Haslam Family, including the CEO of PFJ, Jimmy Haslam, and his brother the Governor of Tennessee, Bill Haslam, own 59% of the company. That means that less than one year before the FBI raid and subsequent charges of fraud that shook the company’s foundations, the Haslam family was paid at least $1 Billion dollars to oversee employees that were – unbeknownst to them of course – scamming their customers out of millions of dollars per year.
Multiple members of the sales team, including management, have already pled guilty to charges including conspiracy to commit mail fraud. In exchange they have agreed to testify against other coworkers at PFJ.
Despite the mounting debt, the dozens of lawsuits, and the possibly imminent criminal charges, Jimmy Haslam maintains his innocence and has declared that he will “absolutely not” be looking to sell the Cleveland Browns, the football team that he only recently purchased in 2012 (the same year as those massive bonuses) for $920 million.
For all the issues that Haslam and PFJ have been experiencing, don’t expect to see the whole thing come crashing down any time soon. PFJ is still far and away the largest operator of truck stops in North America with annual revenues of over $30 billion dollars. It takes more than a scandal and a few lawsuits to bring down a giant like PFJ. Those in charge of PFJ on the other hand…
Next Story: The FMCSA Has Issued A Clarification On The New HOS 30-Minute Breaks
Source: esp, newsnet5, cspnet, waitingfornextyear, wsj, cbssports
Two Thermos says
So…… we’re saying, what? They’re too big to fail? Where have we heard that before? Frankly, nothing surprises me anymore. Flying J’s descent into bankruptcy didn’t surprise me. And Pilot/Flying J’s descent into whatever you want to call it (decreptitude?) isn’t surprising me, either. Anytime you’re in a Pilot or Flying J, standing there in a line of 15 or 20 people with only one cashier to check ’em all out, you kind of begin to wonder what the deal is. Screwing around with customers on their fuel prices/discounts, crappy customer service, poorly maintained facilities. too often dark & poorly lit parking areas. Frankly, I find there’s a lot not to rave about.
James C says
I got a brother who’s da governor of my state! I can do anything I want, hayuk!
Redneck’s a redneck, no matter how much money he’s got.
Hillbilly says
James C, You wouldn’t know a redneck from a Yank! We’re Hillbilly’s and dang proud of it!
If you gona slam a group of people get it right!
Stormy says
Actually you are Volunteers. Kentuckians are Hillbillies and we are dang proud of it, too!
James C says
Well, how about “hick” then? That covers pretty much ALL the bases! XD
And I draw everyone’s attention to the following:
http://cmsimg.tennessean.com/apps/pbcsi.dll/bilde?Site=DN&Date=20130517&Category=BUSINESS01&ArtNo=305170069&Ref=AR&MaxW=600&Border=0
Quote under it: “I ain’t a crook, damnit!”
John says
In the end these businesses fall into the category of the owners fleecing the company and this should be of no surprise to anyone. I refrain from buying at a Pilot or Flying J but in all reality how can you do that realistically. When in fact you now have basically 4 big truckstops that have combined into 2.
When you have Flying J/ Pilot pitted against Petro/ TA truckstops. You really have less and less choice where to fuel. It also makes it far less important for these truckstops to compete on price. We now have $13 showers, pricey food menu’s and a lack of any real understanding of how the truck driver is suffering. These truck stops have become a way to fleece the truck driver and the pathetic driver rewards and such they tout are nothing more then gimmicks.
Jason says
yep
Greg D says
Well 1 billion went to the purchase of the Browns. The other .7 billion probably to Bill’s campaign funds!!!! Don’t worry the 30 % price increase on everything will help make it up….
barton van buskirk says
another company executives stealing money before taking care of the company and not paying the employees a living wage ..there is no hope left in america.. everybody is out for them selves
john says
Unregulated capitalism. This is what happens when the most money gets to dictate the rules.
Matt says
@john just curious you never heard of loves truckstop or free showers with 50 gallons fuel purchase if ta or pilot your only choices I feel bad for you wow
Steve Bell says
Interesting when you get rich enough you can just separate your assets and liabilities….Only the little guys actually pay…
JimmieA. says
It’s called and I’m sure you’ve seen the symbol….LLC, stands for limited liability corporation.
Your company can go bankrupt but it won’t effect your personal finances. Thus the separation of personal and business bank accounts.
At least that’s my understanding.
Karen says
There is a solution to all this if everyone wants to try it: let truck drivers buy their own truck stop chain! Truckers need to get a pool going, get enough cash to open and operatw 10 truckstops. Then let the profits expand the company into more truckstops. It will be for truckers, free showers, 10 cent coffee, BBQ chicken and ribs, everyone will have free parking and free TV/ radio and internet in their parking lot. If each driver got a special truck stop card for $100 per year, everything is free! What a wonderful dream…
Brian says
Love it Karen.
garyd says
i think walmart will start to open truck stops it seems they are the only stores with a deep enough pocket to monopolize this sector…
jack says
4 billion is not much to owe with the chain of stores they operate.What about the federal government and obama>???We are 17 TRILLION in debt and have NOTHING to show for it
Tony V says
I hope this doesn’t affect my Pilot Points. I’m saving up for that fancy-dancy GPS.
lonehighway says
For a national giant they are worse than walmart…i refuse to buy my fuel there as it is typically .30 cpg higher than other places and it was 0.48 cpg higher just two days ago than other truck stops…screw them i bought a shower the other day…12 bucks now…that was the last straw…
detroit diesel says
Who buys showers? I have 12 of them on my pilot card? The only thing i hate about truck stops is that they are so expensive on things, but all in all i like all truck stops especially loves they have decent prices.
Janice says
I feel the same way as the other driver about the Pilot & Flying J. The Flying J always had “Handicapped Parking”. Now that the Pilot has taken over they have made these spots into Reserved Parking. The woman at the Pilot informed me that it is not required by law to provide handicapped for big trucks. That just proves to me that the Flying J cared enough to provide them and the Pilot cares more about the almighty dollar to line their pockets with!!!!
Steve Hughart says
Well I ONLY use loves for the reason that they don’t charge for parking and they give more in points than anybody else.
Smith Dhaiti says
Given a choice, I will take Love’s over Pilot simply because, as an African American I am appalled by how we are denigrated behind closed doors by management but yet they are happy to take our money.