There’s been another trucking company casualty. Regional carrier Midland Transportation closed its doors Tuesday, after its bank told company officials they would no longer extend credit to cover payroll and other expenses.
The decision against the Marshalltown, Iowa-based carrier follows a move last week in which a judge appointed an attorney to oversee the company’s assets after its bank began foreclosure proceedings for the more than $8.5 million it owes.
The closing puts 400 employees out of work in Iowa and another 300 out in five other states.
Published reports say that some employees reported their paychecks had bounced in recent weeks and they also received a notice that health benefits were being cut out earlier this month.
Many employees said they knew the company was having financial problems, but company officials seemed optimistic they could work things out.
The decision against the Marshalltown, Iowa-based carrier follows a move last week in which a judge appointed an attorney to oversee the company’s assets after its bank began foreclosure proceedings for the more than $8.5 million it owes.
The closing puts 400 employees out of work in Iowa and another 300 out in five other states.
Published reports say that some employees reported their paychecks had bounced in recent weeks and they also received a notice that health benefits were being cut out earlier this month.
Many employees said they knew the company was having financial problems, but company officials seemed optimistic they could work things out.
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