Never Stand Still

I've heard of that movie, but have never seen it I think I'm going to though, I understand it's quite the film.

 

Maybe you could impress your date with your knowledge of CF history! Lol.

 

It's like so hard to talk about trucking stuff with non-trucking people, that I try to stay away from it LOL!

It's like that one kid on here who worked for Werner and got in some trouble and he would call his sister every night she would be like "Oh your just having a bad day it's okay." And I remember X1Heavy saying "Yeah your sister aint in trucking she doesn't know and won't know, you can't really have bad days out here. Stop calling your sister she can't do anything for you."

I standing in the parking lot and I said to her I think your great and she said good because I was kind of hoping you would ask me to get together again.

 

Alright guys, here's the next chapter of the CF saga.

 

So in the late 1980s CF managed to spend all the companies money it was very sad and they were out of money and had no money to pay all there debts.

In the 1980s they spent wildly and lavishly on buying fancy air freight companies that just took tons of money and produced very little and also bought out a dud of a trucking company in the early 1980s known as Penn Yan Xpress which was also a flop.

However because they were all big and fat the board didn't give doodle and let Larry Scott the CEO do what ever he wanted.

It's interesting @Mike_77
asked what about the board and what they thought well I will give you the direct quote.
Page 389 Last Paragraph

"As the maelstrom of financial complexities gathered momentum, the board, for the first time, began to challenge Scott's command. It is difficult to say with any precision just why the board waited so long. History dictated patience. Since 1972, CF had enjoyed a string of sixteen profitable years. Equally important, in the spring of 1990, it was still very much Ray O'Brien's board. He had recruited all the outside directors, and most were business associates or social friends who trusted O'Brien."

Well I guess that answers that question then. They were all buddy buddy and the board figured O'Brien and his boys knew what they were doing no need to question them.

Meanwhile the top was spending the company into oblivion. CF for a while had so much money they were able to self finance, but eventually spent them selves into oblivion.

 

What happened Emery Air Freight spent CF into oblivion and around 1990 CF defaulted on there loans. The board then had to take a look at things and decided Larry Scott the CEO was the problem and they hired a group to look into CF's financial situation and wonder how they got there and work on getting out of there financial troubles.

But in June the situation with CF's lenders became more ciritical and the board wanted to get rid of Larry Scott, but couldn't because there consultants told them if you do that it will show were in trouble and that might hurt other financing options down the line. So in June Don Moffitt who was Scott's arch enemy was called back in to clean up Larry Scott's mess.

 

Anyhow next segment were going to be talking about how Don Moffitt comes in to save CF and keep them on the road for another 12 years.

 

It's a little easier to see now why CF went under because that is a big mystery why they went under, but basically it seems they had a spending problem and do nothing board and management changes and shifts and also changing times and markets and new competition and there time was over and time passed them by.

 

Lol I hear you. My wife is an RN and she knows more about trucking history and the business in general than most drivers do. Being exposed to such things is the price she pays to be with me lol.

 

I thoroughly enjoy your explanation and view on the book. Keep it coming!

I truly believe CF was really closed to get rid of the union.

I can’t imagine what CF would be like today if they were kept alive and still owned freightliner. They’d probably be the size of Fedex but more streamlined on freight only and not package stuff.