Arrow had unpaid bills of nearly half a million

it isn't that much for an outfit that size it doesn't even amount to a month of fuel but I would suspect more to come

 

They picked a bad time to sign a big note. They should have been replacing a lot of their junk in the years before when rates were good.

 

The execs were busy taking profits to buy their toys......
People never learn......

Again....there will be more failures...YRC is possibly next......
Imagine if CRE and Swift both went belly-up.......

 

I think there will be some more fall as the biz model depended on credit for a lot of them and that is just drying up and there were a lot of leveraged buyouts that took place and for them to work they have to refinance etc..
I have also seen in my shop that it is taking more fiscal gymnastics to get the bills paid by some of the big outfits

 

Arrows freight was IMO ,more specialized like ATS (Anderson) than run of the mill TMC & Maverick. The timing of the closing sure reminds me of JAN 2,2001 When Internet Ceased their trucking operations.
QUOTE:

On Jan. 2, 2001, Intrenet Inc. announced that its subsidiary trucking companies would cease operations; most of its employees would be laid off; and its assets would be sold to satisfy creditors. Intrenet, Inc. trucking company subsidiaries include Roadrunner Trucking (since 1974), Eck Miller Transportation (since 1928), Advanced Distribution Services(ADS) and Roadrunner Distribution Services.
Unquote.
I thought allot of Arrow(since 1948), they must have done somthing right to come this far.
....... Godspeed..... Arrow Trucking Inc.
​

 

I remember when eck miller went under. ny neighbor a o/o lost 3-4 grand.

 

Fuel card debt has to be paid daily. Probably all the above coupled with a cash-flow crisis, and the inability to obtain short-term credit to service the cash-flow requirements killed them.

 

I forgot to mention TRISM.
That was another ugly deal.
That was a quick rise and fall of a large flatbed outfit.
With the intenet group I always heard embezzlement was the reason why they ceased operations. I really liked running there at Roadrunner 94-97
I left a orientation for KTL in Joplin before, and my cousin left orientation at Arrow because of all the weird papers they wanted him to sign off on, such as the toll reimbursemts,etc. He figured it was a bad deal and you had to be pretty hard up to sign all the required papers. So Arrow ended up with mostly desperate drivers with no legal recourse.

 

Ahh Pony..... on the fuel deal.... Comdata requires a substancial deposit in cash prior to allowing the card to operate / issue checks. The typical requirement for a small fleet was 20K plus anticipated monthly usage. You are forbidden to invade the reserve. It is for unknown charges still in process like pops fuel who hand writes a ticket. Balance refunded to you after 30 days post acct. closure.

Arrow's accounting dept and the controller knew months before the shut down. I assure you that likely DAILY reports / projections were completed for the controller and forwarded to the CEO on the current P&L , collections etc. Since the shutdown was in January ( wasn't it? ) that the decision to close was made right after Thanksgiving. All the uppers were in on it, had to be. You don't just call Comdata at 9am and say "I want 500 fuel cards cut off in 2 hrs. " It doesn't work like that.

I can almost assure you that the snapshots were all negative in the 4th qtr , A plan was made to shut down operations by " X " if these numbers don't change by " Y " and they didn't.... so when the seniors came back from New Years , they shut her down.

What I don't get is : The Feds are after them for several legal charges including RICO. From this one can easily assume that A: they ignored the advise of their legal counsel or B: Didn't consult their counsel. Both of which are stuipid as RICO reaches all your personal holdings on conviction.