Fleet Management

New Century Transportation Files for Bankruptcy

June 10, 2014

By Evan Lockridge

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In 2006, New Century Transportation's founder, Harry Muhlschlegel, was named an HDT Truck Fleet Innovator.
In 2006, New Century Transportation's founder, Harry Muhlschlegel, was named an HDT Truck Fleet Innovator.

The trucking company New Century Transportation is shutting down and filing for Chapter 7 bankruptcy liquidation.

A copy of a June 9 letter to employees from the New Jersey-based carrier and obtained by Truckinginfo.com says the decision came when its lender “unexpectedly declined to continue funding regular business operations.” It goes on to say New Century then “immediately took steps to seek financing and other alternatives including a sale of all or part of the company, in order to continue operations, but to date, its efforts have been unsuccessful.”

The letter also states advance warning about the bankruptcy to employees was not possible any sooner because New Century says it would have precluded its ability to secure alternative financing or a sale of the company.

When contacted, a company official would neither confirm nor deny the closing and referred us to CEO Terrance Gilbert. There has been no response to a voicemail left by Truckinginfo.com for Gilbert. However, the Courier-Post newspaper, Camden, N.J., reports an employee who answered a call at the firm's headquarters confirmed the bankruptcy announcement and said workers had been informed of a planned shutdown.

The Westampton, N.J.-based carrier specialized in both truckload and less-than-truckload services with a fleet of 2,000 trucks, according to its website. The bankruptcy reportedly puts some 1,500 people out of work.

According to Transport Topics newspaper, New Century was ranked the 45th largest truckload carrier in the U.S and Canada by revenue last year, with $127 million in business. It was also ranked as the 30th largest LTL carrier, with $144 million in business.

New Century Transportation was founded in 2000 and also operated the affiliates North Wind Logistics and Western Freightways, a Colorado-based carrier it purchased in 2006.

In 2006, New Century Transportation's founder, Harry Muhlschlegel, was named an HDT Truck Fleet Innovator for his innovative TL/LTL model and early adoption of specs such as wide-base single tires.

Comments

  1. 1. tony deleon [ June 10, 2014 @ 12:56PM ]

    why are your drivers sitting in new jersey terminal with no ride to there homes

  2. 2. shelly smiddy [ June 10, 2014 @ 03:04PM ]

    my uncle works for your company , pretty crappy what you have done to your employees. Not even a warning or nothing just let them all go, I guess that's the American way these day uh use and abuse them and let them go. No wonder people are on welfare.

  3. 3. Tomas [ June 10, 2014 @ 03:30PM ]

    ^ Hell of a way to recruit drivers, hope nobody calls you

  4. 4. TomKat [ June 10, 2014 @ 05:30PM ]

    Does anyone know who there bank was?

  5. 5. darwin bratcher [ June 10, 2014 @ 08:02PM ]

    titan will allow pets n riders and need teams to run south west they got open door policy all late model trucks automatic driver and fsmily orenited up to 39 cents a mile terminsls in md tn in and oh dont wait call asap

  6. 6. Will C [ June 11, 2014 @ 07:55AM ]

    If companies would stop cutting rates just to get a customer and then have to borrow money to keep operating this type of thing would stop happening. What good is having all the freight in the world if it is not profitable. This is a good example of what happens when you operate this way. It is pretty sad.

  7. 7. Will C [ June 11, 2014 @ 07:56AM ]

    If companies would stop cutting rates just to get a customer and then have to borrow money to keep operating this type of thing would stop happening. What good is having all the freight in the world if it is not profitable. This is a good example of what happens when you operate this way.

  8. 8. Richard Weil [ June 11, 2014 @ 08:15AM ]

    What really underlies the chapter 7 demise of New Century is the reliance on economies of scale to finance marketplace growth without sufficient capital. As with Jevic, New Century demonstrated the ability to get customers and use innovative practices to operate. But in an industry that with the exception of Old Dominion makes pennies on the dollar, stability is a hard outcome to achieve. Of course observing Yellow screw up Jevic is just as ironic. Adding insult to injury are all the recruiters from TT's list of 100 largest carriers who wouldn't know what to do with a driver that could manage to handle ltl deliveries directly from shipper to consignee and seem to think that the gear jamming at New Century is just the same as what happens at Swift or JB Hunt.

  9. 9. pedro rivera [ June 11, 2014 @ 11:50AM ]

    No surprise. We had many drivers doing things that were not in the best interest of the driving public.

  10. 10. pedro rivera [ June 11, 2014 @ 11:50AM ]

    No surprise.

  11. 11. Billie Jo Mentzer; Smith [ June 11, 2014 @ 01:57PM ]

    So sorry to hear of this and the affects I'm sure it has had on these drivers and their families. Please feel free to contact me and I will do my best to ensure a speedy and comfortable transition to my company. A home where you can STAY!

  12. 12. Cheryl Webb [ June 11, 2014 @ 02:08PM ]

    Although I am a recruiter, it amazes me at how many of these sharks are going after all these drivers (bait). I know they all need to get home and find new jobs, I'm pretty sure they will make their decisions whether they want to go through a recruiter or get their boundaries together after being hit so quickly with this dreadful closing.

  13. 13. Rene Roupinian [ June 11, 2014 @ 03:44PM ]

    Outten & Golden filed a class action lawsuit on June 9th on behalf of the employees who were terminated without advance written notice. www.warnlawyers.com for more information about the suit.

  14. 14. Dale [ June 12, 2014 @ 11:53AM ]

    Someone mentioned a class action lawsuit in progress on behalf of the drivers. I'll just say that with them filing for bankruptcy, you cant get blood from a stone. Just ask the old Jevic drivers. Im one of them.

  15. 15. John [ June 12, 2014 @ 07:17PM ]

    Sounds just like ARROW, from Tulsa, a few years back. When the owner died, his wife inherited the company. She then, stepped down, after starting an insurance company that covered ARROW trucks & equipment. She handed the company to her son, who squandered all the company money on cars, vacation homes, and trips to Vegas. A different expen$ive vehicle, to go to work in, without a repeat in 10 days. His wife, wrote a check for a very expen$ive Italian motorcycle, for his B-Day. Both mom and son walked away scottfree. Drivers were left stranded away from home, at Christmas!
    Other companies stepped up and offered the stranded drivers a way home, but NOT with the recruiting frenzy shown here.
    The feds went after the CFO of ARROW, and if memory serves, he killed himself to avoid prosecution. The banks took the trucks & equipment, and sold them to settle some of the debt. The drivers were left with NOTHING!

  16. 16. chuck [ June 14, 2014 @ 09:16AM ]

    We are a carrier out of Colorado. Not very big but am offering a ride or two from east coast to Colorado if a driver is looking for help to return home or is looking for a job out of colorado. Sorry for New Century and it's employees but unless you know ALL the facts before passing judgment.

  17. 17. Tim Chadd [ June 15, 2014 @ 04:31PM ]

    The class action lawsuit filed by Outten & Golden on June 9th was filed on behalf of ALL THE EMPLOYEES (not just the drivers), who were terminated without advance written notice. www.warnlawyers.com for more information about the suit.

  18. 18. dan Coberly [ June 16, 2014 @ 05:38AM ]

    Politics aside,
    I am employed by a company that could possibly hire every one of these drivers that are now unemployed.

    I am sure that this is the same tune every trucking company has voiced over the last week or so in this event.

    By today I am confident every one of the drivers that actually wants to work is already employed.

  19. 19. what a joke [ June 16, 2014 @ 03:38PM ]

    Where are the tractors?? If i. worked for them i would hide mine till i got paid

  20. 20. steve black [ June 16, 2014 @ 07:39PM ]

    too many trucks chasing the same loads, We need to set both min rates and ensure truckers are paid in 20 days from brokers with no more than 10% taken off the top many western canadain companies are paying $25.00 per hour and 55 cents per mile.

  21. 21. DANNY [ June 30, 2014 @ 08:27AM ]

    Great ! more freight for Mohammed & Ahmed to funnel funds to AlQeada

 

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