A 71-year-old, family-owned trucking company announced it was shutting its doors after it was unable to overcome a period of sustained financial losses.

Groveland, Florida-based Carroll Fulmer Logistics announced on July 29 that “with deep regret” it will cease operations.

“This decision follows a period of sustained financial losses that have proven insurmountable despite rigorous efforts to reverse course," the statement continued.

“Our fleet of over 200 company drivers and over 50 owner-operators has been the lifeblood of our operations, and we honor their invaluable contributions to our legacy,” the announcement said.

“In the next two weeks, we are focused on completing as many remaining deliveries as possible and — above all — ensuring our drivers return home safely.”

For motor carriers hauling for the company, a FAQ on its website instructs them to continue to submit invoices as usual, and “we will make every effort to pay as much as possible based on available funds.”

The FAQ also informed customers that it was working to fulfill as many remaining deliveries as possible and that it may be able to take additional orders for the next couple of weeks. Empty Carroll Fulmer trailers staged on customer yards will be picked up as soon as possible.

Beset By Personal Injury Litigation

An article in the Clermont Sun indicated that personal injury lawsuits were a factor in the shutdown, along with the freight recession the industry has battled for the past few years.

Philip Fulmer, one of the company’s partners, told the paper that some weeks, company lawyers were fighting six to eight lawsuits at a time.

“There are many attorneys who make it seem easy to sue a trucking company,” Fulmer told the paper. “Many of these lawsuits are bogus, meaning that no injury actually occurred, but we still have to fight them, and that takes a lot of money.”

The company’s SAFER profile indicated 40 reportable crashes in the past two years, one fatal and 13 injury. It also showed a higher than average out of service percentage for vehicles, 35.5% of inspections for the prior 24 months. Driver out of service violations, were much lower than the industry average.

Efforts to Turn Carroll Fulmer Around Unsuccessful

In May, the company turned to Gordon Brothers for help in turning the company around.

The “holistic, multi-pronged solution” included $27 million in financing to optimize Carroll Fulmer’s capital structure in support of continued growth. 

“Carroll Fulmer will leverage the financing that includes a first-lien revolving credit facility and an equipment sale leaseback for working capital to support its go-forward plan," said the announcement.

Gordon Brothers also was providing asset advisory services "to unlock additional liquidity" across accounts receivable, real estate and equipment, and to right-size the fleet.

Unfortunately, it appears that it was too late to make a turnaround happen.