Montgomery Transport LLC in Birmingham, Alabama, suddenly announced it was closing effective immediately on October 9, putting hundreds of truck drivers and other employees out of work. 

The company reportedly has filed for Chapter 7 bankruptcy, which means liquidation of all assets in order to pay creditors. That’s in contrast to Chapter 11 bankruptcy, which allows companies to reorganize and restructure while continuing operations.

An internal message to drivers from operations, shared on social media by several Montgomery Transport drivers, told drivers to deliver their loads but not to pick up any additional loads, and to return to the terminal or to their home and await instructions.

Montgomery Transport specialized in open-deck operations, including over-dimensional, heavy haul, and wide load, transporting products such as steel, lumber, building materials, and steel beams and coil. According to its SAFER records, the carrier had about 450 power units. 

Behind the Closing of an Alabama Flatbed Carrier

The exact conditions leading to the closure are somewhat unclear, but here’s what we know so far:

In 2022, a private equity firm, One Equity Partners, bought a controlling interest in Montgomery Transport.

However, according to the message to drivers, in June, One Equity Partners decided to exit the trucking space and sell. A purchase by P&S was in the works, according to this message.

P&S, or PS Logistics, has been acquiring a number of other carriers over the past several years, including Fluker Transportation, the flatbed division of ELS, and Buddy Moore Trucking last year.

According to the Montgomery Transport operations message to drivers, “a lawsuit and restraining order was filed by Rollins Montgomery to stop the sale,” forcing the company to go into bankruptcy. Rollins Montgomery had a controlling interest in the company prior to the sale to One Equity. 

However, Rollins Montgomery issued a news release on October 9, saying, “there has been speculation suggesting that my actions, including recent litigation with the majority owners of Montgomery Transport and other parties, are somehow responsible for the company's challenges. That simply is not true. I would never take steps that would intentionally harm the company I built and have fought for over so many years.

"The current circumstances stem from financial decisions that were beyond my control. I have not had a controlling interest in the company since February of 2022.”

Earlier this year, the company went through a flurry of new executive appointments, including a new chief operating officer, vice president of operations, and chief financial officer.

It also opened a new 4,500-square-foot fitness and recreational facility at the Birmingham terminal. And the company earned a number of safety awards from the Alabama Trucking Association for its 2024 performance.

Freight Recession Continues to Claim Trucking Companies

Montgomery Transport's closure is the latest in a number of major motor carrier bankruptcies, including autohauler Jack Cooper Transport and Carroll Fulmer Logistics.

The industry is combating a record-long freight recession, with stagnant freight rates and record-setting operating costs. 

In a recent keynote address, Werner Transportation chief Derek Leathers pointed to a spate of recent bankruptcies of carriers operating at least 250 trucks.

“When you have 17 of them go under and file bankruptcy in one quarter, that really tells you that we're kind of at a tipping point where people just can't take it anymore, and you can't support this rate structure for any longer.”