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Home»Finance»Trucking company files Chapter 7 bankruptcy, shuts down abruptly
Finance

Trucking company files Chapter 7 bankruptcy, shuts down abruptly

October 11, 2025No Comments5 Mins Read
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Trucking company files Chapter 7 bankruptcy, shuts down abruptly
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When a trucking firm shuts down, it normally has a wind-down interval when it delivers any remaining hundreds in its possession. Not doing so leaves hundreds of individuals in limbo, since they do not know whether or not their orders will ever arrive.

The issue may be even worse when objects being delivered have an expiration date or would possibly in any other case turn into much less helpful, and even nugatory, in the event that they sit.

In some circumstances, objects in mid-transit turn into a good greater trouble, as prospects have paid for the supply, however whoever finally ends up proudly owning the property of the bankrupt freight firm has no obligation to ship.

An identical challenge arose when furnishings firm Mitchell Gold + Bob Williams went bankrupt in 2023. Clients had paid it for supply, however that fee had not been despatched to its transport companions.

In the end, the chapter court docket allowed Ryder Final Mile and different freight corporations to cost the purchasers once more in the event that they needed their items.

Within the case of Montgomery Transport, which filed for Chapter 7 chapter safety on Oct. 9 and instantly shut down, the destiny of its in-warehouse and in-transit deliveries stays in limbo.

Montgomery Transport LLC, a Birmingham, Alabama-based flatbed trucking firm, filed for Chapter 7 chapter and instantly ceased operations. That leaves about 1,000 workers out of labor and the destiny of something the corporate was transport unsure.

The corporate described its enterprise on its web site.

“Montgomery Transport is a number one flatbed provider within the nation specializing within the secure transport of over dimensional freight. Our firm is constructed round understanding the distinctive wants of our prospects and our drivers. Which means state-of-the-art security expertise, well-maintained gear, excessive requirements for high quality, and robust relationships,” the corporate shared.

It then follows with an announcement that now rings hole, given the Chapter 7 chapter submitting and the abandonment of its remaining hundreds:

We deal with each haul prefer it’s crucial one on the street — as a result of to us, it’s.

  • Montgomery Transport LLC (based mostly in Birmingham, AL) filed for Chapter 7 chapter and ceased operations instantly.

  • The submitting adopted a failed sale to P & S Transportation.
    Supply:LinkedIn

  • Roughly 1,000 workers at the moment are out of labor on account of the shutdown.

  • “That is the most important trucking chapter of the yr,” in keeping with Craig Fuller, a freight business knowledgeable, posting on X, the previous Twitter.

  • The abrupt closure suggests no “wind-down interval.” Operations ceased as of the chapter.

Supply: FreightWaves

Whereas folks responding to Fuller’s publish on Twitter stated they noticed this coming, many didn’t.

“The sudden shutdown has left lots of of drivers stranded throughout America as the corporate’s management instructed them to halt operations. This abrupt closure represents a major disruption within the trucking business and has created speedy challenges for each drivers and purchasers depending on Montgomery’s freight companies,” Freightwaves reported.

The corporate’s proprietor One Fairness Companions had entered into negotiations with P and S Transport to promote Montgomery Transport, with a cut-off date of Sept. 30. These plans have been derailed by a Sept. 26 lawsuit.

Montgomery Transport's Chapter 7 bankruptcy has put 600 drivers out of work. Shutterstock
Montgomery Transport’s Chapter 7 chapter has put 600 drivers out of labor. Shutterstock
  • Baez et al. v. Montgomery Transport, LLC et al. — Civil tort/personal-injury case filed within the Southern District of Texas
    Case No.: 4:21-cv-02546 Choose: Lynn N. Hughes Nature of swimsuit: 360 (Torts — Private Damage — Different)Supply: PACERMonitor itemizing

The lawsuit halted the gross sales course of, in keeping with Freightwaves.

“With the standard buy settlement derailed, the corporate tried to proceed with the sale via Chapter 11 chapter proceedings. By October 8, the state of affairs deteriorated additional when collectors failed to succeed in consensus phrases, forcing the corporate to transform to Chapter 7 chapter and shut down operations fully,” the web site shared.

Drivers will likely be paid for work already carried out, in keeping with Montgomery Transports, however after that, not a lot is understood.

Hundreds that have been in transport are anticipated to be delivered, and drivers have been promised pay for these journeys.

“The corporate directed drivers close to the Birmingham terminal to return there, whereas these nearer to their houses have been advised to return dwelling and await additional directions. Regardless of these provisions, the sudden closure leaves vital uncertainty concerning remaining funds, advantages, and different employment-related issues,” Freightwaves added.

The submitting contains the complete Montgomery Transport Group.

“Once in a while one in every of these occurs and it’s stunning. That is a kind of,” shared Cale Pearson, a seasoned transportation chief, on LinkedIn.

Associated: 52-year-old low cost chain closes places in a number of states

This story was initially reported by TheStreet on Oct 10, 2025, the place it first appeared within the Retail, Buying Malls, Chain Shops Information & Evaluation part. Add TheStreet as a Most well-liked Supply by clicking right here.

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