Celadon Hires Former Swift Transportation CEO to Assist With Turnaround Efforts

By
Jennifer Smith
Aug. 12, 2019 9:16 pm ET

Freight transportation company Celadon Group Inc. is bringing on the former leader of trucking giant Swift Transportation Co. to help overhaul its truckload division after securing new backing to help its turnaround efforts.

Celadon said Monday the company has engaged DPX Consulting LLC to oversee its main trucking unit, Celadon Trucking Services Inc., with DPX founder Richard Stocking serving as the division’s chief transformation officer.

Mr. Stocking was chief executive at Swift before that company merged with fellow Arizona-based carrier Knight Transportation Inc. in 2017 to form Knight-Swift Transportation Holdings Inc., the largest truckload carrier in North America.


At Indianapolis-based Celadon, Mr. Stocking will provide primary leadership of the trucking division, with DPX overseeing sales, operations and maintenance in a bid to “accelerate needed improvements in our U.S. truckload business,” Celadon Chief Executive Paul Svindland said in a statement. “DPX brings Richard’s decades of experience with Swift as well as the deep analytical and front-line operations capability of two other seasoned truckload executives.”

The move follows Celadon’s recent securing of $165 million in new financing to help fund its turnaround efforts. Backers include a shareholder identified in securities filings as Luminus Energy Partners Master Fund Ltd., which is set to receive warrants to buy 16 million common shares that are exercisable immediately as part of a deal that could give it a roughly 49.9% stake in the company.

Celadon is seeking to move past accounting problems that led to a federal probe and a $42.2 million settlement to settle fraud claims after filing false financial statements and lying to auditors in efforts to hide losses tied to a big bet on the truck-leasing market.

“With the recent closing of our refinancing, we are laser-focused on returning to profitable operations, and we expect DPX to help us achieve a rapid and resilient pace of change,” Mr. Svindland said in the statement.

Trucker Celadon Hires Former Swift Transportation CEO to Assist With Turnaround Efforts