Celadon Group has named former Swift CEO Richard Stocking chief transformation officer of Celadon Trucking Services, its primary U.S. truckload business.
The Indianapolis-based carrier has struggled over the past few years, including an investigation by the Securities and Exchange Commission for violations related to securities fraud. Earlier this year, the company agreed to pay $42.2 million in restitution for filing false and misleading statements to investors and falsifying books, records, and accounts.
In early 2017, The firm posted a $10 million operating loss in the first quarter of the year and was threatened with delisting its stock on the New York Stock Exchange. Current CEO Paul Svindland was named to his position later that year, as the company began divesting itself of some of its businesses, selling off its flatbed operations and its driver training business. Earlier this year, it sold its logistics business and its intermodal business.
In late July, Celadon announced that it has refinanced its former revolving credit facility and obtained $165 million in new financing. In the announcement, Celadon said the funding would “provide a platform for the company to engineer a turnaround,” including replacing 2,000 tractors with new units in the next few quarters.
On Aug. 12, the company announced it has engaged DPX Consulting, a business founded by Stocking, as well as naming Stocking in charge of its turnaround.
"We are excited to have Richard Stocking and the entire DPX team working with us to accelerate needed improvements in our U.S. truckload business,” said Celadon CEO Paul Svindland in the announcement. “DPX brings Richard's decades of experience with Swift as well as the deep analytical and front-line operations capability of two other seasoned truckload executives. All are veterans at instilling sales and operating discipline, accountability, and a winning culture.
“With the recent closing of our refinancing, we are laser-focused on returning to profitable operations, and we expect DPX to help us achieve a rapid and resilient pace of change…. This vote of confidence by an industry leader shows how far the organization has come over the past several quarters and is inspiring to our people.”
DPX will oversee sales, operations, and maintenance for Celadon Trucking and will provide customer and vendor introductions and support as needed, while Stocking will provide primary leadership of the Celadon Trucking team. Compensation includes an incentive component linked to achievement of progressively improving operating margin benchmarks.