Standard Forwarding, a regional less-than-truckload carrier, has filed for Chapter 11 bankruptcy protection, according to the carrier's web site
. The East Moline, Ill.-based company said the move was made in order to create a competitive cost structure for the company going forward. In the meantime, the company is moving ahead with business as usual.
According to Wolfe Research's Friday Freight weekly e-mail, Standard Forwarding is waiting on a potential sale to an unidentified buyer, which is expected by late December or early January. "However, to date, no LTL carrier that we are aware of has been able to re-emerge from Chapter 11," Wolfe Research said.
However, because Standard Forwarding is a unionized company that has to pay out pensions, the sale is uncertain, Wolfe Research said. The buyer would have to assume pension contributions for orphan obligations, or those union employees that worked for companies no longer in operation.
Standard Forwarding employs 480 workers, with a fleet of 200 tractors and 525 trailers. The company took in $79 million in revenue in 2008, according to Wolfe. Inbound Logistics ranked the company as one of its Top 100 Motor Carriers for 2009.
"We sincerely appreciate the support and encouragement that all of our customers have offered throughout this process and commit to you that we will continue to provide the high level of service that you have come to know us by - now and in the future," the company said.
. The East Moline, Ill.-based company said the move was made in order to create a competitive cost structure for the company going forward. In the meantime, the company is moving ahead with business as usual.
According to Wolfe Research's Friday Freight weekly e-mail, Standard Forwarding is waiting on a potential sale to an unidentified buyer, which is expected by late December or early January. "However, to date, no LTL carrier that we are aware of has been able to re-emerge from Chapter 11," Wolfe Research said.
However, because Standard Forwarding is a unionized company that has to pay out pensions, the sale is uncertain, Wolfe Research said. The buyer would have to assume pension contributions for orphan obligations, or those union employees that worked for companies no longer in operation.
Standard Forwarding employs 480 workers, with a fleet of 200 tractors and 525 trailers. The company took in $79 million in revenue in 2008, according to Wolfe. Inbound Logistics ranked the company as one of its Top 100 Motor Carriers for 2009.
"We sincerely appreciate the support and encouragement that all of our customers have offered throughout this process and commit to you that we will continue to provide the high level of service that you have come to know us by - now and in the future," the company said.
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