A string of bad news that began with the departure of a company president a year ago and accusations of embezzlement by other top officials has ended with Asche Transportation Services filing for bankruptcy.
Asche Transportation, Shannon, Ill., has filed for protection under Chapter 7 of the Bankruptcy Code. Along with the parent company filing, wholly owned subsidiaries Asche Transfer of Shannon, Ill., and AG Carriers, Inc. of Tavares,
Fla., also filed Chapter 7 petitions. Both subsidiaries were long-haul reefer fleets.
In Tavares, AG Carriers abruptly laid off nearly 500 workers just days before Christmas. According to The Orlando Sentinel, the company told drivers on Tuesday to head back to Tavares with their rigs and pick up their last paychecks. Recruiters from LCT Transportation, formerly Lester Coggins Trucking, in Okahumpka, Fla., were outside the company's office recruiting drivers as they left, according to the paper.
A number of factors contributed to the Chapter 7 filings, according to the company, including the economic slowdown, driver shortages, higher fuel prices, increased insurance rates and higher interest rates. Efforts to restructure the businesses, which included attempts to sell the businesses, restructure the debt or obtain additional equity capital, were unsuccessful.
Last January, Asche dismissed the controller at Asche Transfer after the controller apparently misstated financial reports and allegedly stole more than $60,000.
In February, Larry Asche, Chairman and Chief Executive Officer, and Diane Asche, Vice President and Secretary, were fired for allegedly embezzling $1 million. At the same time, the company announced it was implementing cost-cutting measures, including the closure of a maintenance facility in Atlanta, along with the reduction of non-essential personnel.
In late April, the company announced its annual financial statements would be delayed, which resulted in the company being delisted from the Nasdaq National Market.
Specialty Transportation Services, Inc. (STS), a waste hauling company affiliated with Asche Transportation Services, Inc., will not be affected by the Chapter 7 filings since approximately 76% of STS is owned directly by a private institutional investor.
Asche Transportation, Shannon, Ill., has filed for protection under Chapter 7 of the Bankruptcy Code. Along with the parent company filing, wholly owned subsidiaries Asche Transfer of Shannon, Ill., and AG Carriers, Inc. of Tavares,
Fla., also filed Chapter 7 petitions. Both subsidiaries were long-haul reefer fleets.
In Tavares, AG Carriers abruptly laid off nearly 500 workers just days before Christmas. According to The Orlando Sentinel, the company told drivers on Tuesday to head back to Tavares with their rigs and pick up their last paychecks. Recruiters from LCT Transportation, formerly Lester Coggins Trucking, in Okahumpka, Fla., were outside the company's office recruiting drivers as they left, according to the paper.
A number of factors contributed to the Chapter 7 filings, according to the company, including the economic slowdown, driver shortages, higher fuel prices, increased insurance rates and higher interest rates. Efforts to restructure the businesses, which included attempts to sell the businesses, restructure the debt or obtain additional equity capital, were unsuccessful.
Last January, Asche dismissed the controller at Asche Transfer after the controller apparently misstated financial reports and allegedly stole more than $60,000.
In February, Larry Asche, Chairman and Chief Executive Officer, and Diane Asche, Vice President and Secretary, were fired for allegedly embezzling $1 million. At the same time, the company announced it was implementing cost-cutting measures, including the closure of a maintenance facility in Atlanta, along with the reduction of non-essential personnel.
In late April, the company announced its annual financial statements would be delayed, which resulted in the company being delisted from the Nasdaq National Market.
Specialty Transportation Services, Inc. (STS), a waste hauling company affiliated with Asche Transportation Services, Inc., will not be affected by the Chapter 7 filings since approximately 76% of STS is owned directly by a private institutional investor.
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