Yellow Freight closure thread

I would agree with you. And it should have stopped years ago. Feel bad for the drivers/employees. But let these big corps fail.

 

After $700 Million U.S. Bailout, Trucking Firm Is Shutting Down (yahoo.com)
As of the end of March, Yellow’s outstanding debt was $1.5 billion, including about $730 million that is owed to the federal government. Yellow has paid approximately $66 million in interest on the loan, but it has repaid just $230 of the principal owed on the loan, which comes due next year.

It requires repeating...........$700 MILLION......burned through over $700 million in less than 3 years. In the meantime ODFL was making $700 million. This thing was a dumpster fire that just wouldn't go out until O'Brien said, 'enough'.

 

Was reading about how much money Yellow is worth based on what they own in land. Looks like they could had survived just because of the amount of real estate. This was a tweet on twitter with the information:

Craig Fuller
@FreightAlley

The Treasury department loaned Yellow $700M, of which $230M has been paid back. In total (including the Treasury loan), Yellow had $1.5B in debt. Treasury and all lenders to Yellow are likely to recover their money. Why? Yellow is worth more dead than alive. Here is the math - Yellow has over 300 terminals, many of which were built prior to zoning laws came about in some of the most coveted industrial areas of the country. It has $1.1B worth of real estate on its books, but this is likely way undervalued. Yellow booked property on its books at “cost less accumulated depreciation.” Imagine how much industrial real estate has appreciated in recent years. Some of these terminals are multiple decades old. Two recent examples: In Q4 Yellow sold a single terminal for $31M which was marked at $3M on its books. A few weeks ago, it sold another terminal for $80M. No word on the value on their books. Considering it was in Compton and was owned by the carrier for decades, it was likely booked for a significant gain. The company also has $1.4B worth of trucks, trailers, and fork lifts.

 

It's this including benefits? You have to see the whole picture to make that statement.

 

"we" should never bail out any company.
"we" as tax payers suffer the consequences.

if any company needs to be bailed out?

shut the doors, cuz you're a failure at managing that business.

or merge with another company, and let that company shut you down, and then all your stuff is rebranded under the new name.

NO MORE BAILOUTS.....

 

I’m thinking point everyone seems to be missing/avoiding here is the creative corporate accounting that’s gone on for years....first at Yaller and Big R separately and then combined...add that to the incredibly absurd exec bonus’s and rate cards based on tariffs during regulation...then adding 50-80% discounts to keep customers
Add that to the thousands of old skool teamsters now retired...but very much around at time of merger
As I remember 20yeara seniority was about the lay off cut line when merger first went thru....their mindset...instilled by those before them was basically no more than 75%....to put it simply. A p&d guy with 20 stops knew...he wasn’t going to get more than 15
Combined with linehaul guys that bought a new pick up every 2-3 years cash..with wait time...since no linehaul unit ever left the yard(ck lane or not) without goin back in shop for something Guaranteeing at least one hour’s time
Ask me how I know

 

I was with CFCC and CF years ago, albeit not driving but I lived through ABF/CFCC merger and left CF shortly before the infamous Labor Day Lockout/Closure so my heart goes out to all those folks affront this but there is life after this sort of thing. It is truly a sad day though to add yet another fallen flag to the long list of old line trucking companies.

 

Lol govt bail outs, ####### Union drivers with #### attitudes, slow trucks drag racing each other, no care in the world. #### them. not sure why people feel remorse for these ########

 

My view is yellow had dozens of chances including some paid for out of my pocket via taxes.

If the company is so mismanaged they cant keep the doors open then they deserve to die and be replaced by a company that CAN keep its doors open.