Days after it announced it was selling off its flatbed division, Indiana-based Celadon said it’s getting out of the driver training business.
Celadon Trucking Services said it will exit its three Celadon Driving Academy locations in Indianapolis, Laredo, Texas, and Richmond, Virginia, later this year. One of Celadon's third-party driving school partners plans to establish accredited driving schools at each of the three locations. Celadon says while it will continue to need new drivers, it has decided a third-party model is more effective. It notes that most over-the-road trucking companies use a network of accredited driving schools rather than running their own.
“Highly qualified professional truck drivers are the lifeblood of our organization,” said President and CEO Jon Russell in a news release. “After a thorough review, we determined that using third-party programs and making additional investments in driver compensation and advanced training would afford a better investment of resources than continuing to operate the schools ourselves. We are trucking specialists, and we will focus on our core business."
It’s the latest in a number of moves the struggling company has made this year to deal with mounting losses.
In May, Celadon announced changes in its top management and a new line of credit, as it said it expected to report a $10 million operating loss from the first quarter.
Also in May, the New York Stock Exchange said problems with Celadon’s financial reporting could result in the company’s stock being delisted.
In July, Celadon Group named Paul Svindland CEO, succeeding Paul Will.
Celadon founder Steve Russell died in April of 2016.