Looks Like Roadrunner Is Trimming The Fat

It was an equity company that #### Falcon in Youngstoen, OH down. Knowing that their major contract (GM) was on the ropes in the U.S., they opted to just run that contract out to the end rather than line up enough other freight to take up the slack when the GM contract ended.

Falcon had the equipment and drivers to survive the GM shutdowns on their lane. The equity company chose to not utilize that equipment in other areas. They had plenty of flatbeds and dry Van's, plus experienced steel haulers and JIT drivers in both flat and van.

It was a case of total mismanagement, or a conscious decision to liquidate the company as soon as it became "inconvenient".

 

Agreed 100%. Not sure that they will turn a profit on this dog. I think it will be sold off in pieces. I guess they could go private then be sold. The stock price has nowhere to go if 95% is owned by one investor

 

They just sold off prime distribution to chr now .

 

Roadrunner sells flatbed business for $30M as it downsizes assets
Roadrunner Sells Intermodal Business to Universal Logistics for $51 Million
Roadrunner Sells Distribution Service to C.H. Robinson for $225 Million

 

I wonder how many of these companies business models were affected by e log?

 

Roadrunner had / has the same issues as Celedon.........
Three Former Roadrunner Executives Charged With Fraud

Peter Armbruster is accused of hiding expenses by improperly deferring and spreading them across multiple quarters to minimize the impact on net earnings. He also is alleged to have arbitrarily reduced certain liabilities, creating an income “cushion” that could be used in future quarters to offset expenses, according to a complaint filed in U.S. District Court for the Eastern District of Wisconsin in Milwaukee on April 3.






Armbruster

Two of Armbruster’s associates, Bret Naggs and Mark Wogsland, who worked as controllers in Roadrunner’s truckload business, failed to write off millions of dollars in overvalued assets and overstated receivables as part of the scheme. The trio also misled Roadrunner’s outside auditor, resulting in financial reports that overstated the company’s profits.

 

Hmmmmmm. So bad management. Not so certain.

I think def trucks, e logs, and plummeting rates.

 

Roadrunner has a charter bus division here in Texas, they just bought out the bus outfit I left a little over a year ago to drive trucks, and based on what I’m hearing from my former coworkers, I’m glad I got out! Crappy benefits and no more per diem on OTR trips, among other things.