Dick Simon Trucking and its parent company, Simon Transportation Services, have voluntary filed for Chapter 11 reorganization under the U.S. Bankruptcy Code.

The Salt Lake City-based company says it plans to downsize its fleet and generate money by selling off such assets and will lay off an undisclosed number of employees. The company says it continues to operate its business and serve customers as usual as it solicits interested bidders for its assets.
In a written statement, Simon Transportation Services said the decision to seek reorganization was based on a combination of economic, industry, and company-specific factors, including “poor revenue production, high insurance costs, and significant disruption in the new and used equipment markets, among other factors” which have created substantial losses.
During the reorganization period, the company plans to reduce the size of its tractor and trailer fleet by as much as 40 percent, beginning immediately. It intends to pursue the fleet reduction over the next several weeks, matching available trucks to the most desirable customer accounts, traffic lanes, and regions. Fully implemented, the plan will result in a fleet of approximately 1,500 tractors and 2,200 trailers.
"We decided to reorganize only after months of struggling to increase the cash flow of the business and the infusion of significant capital by our majority stockholder," said CEO Jon Isaacson. "Unfortunately, our sources of liquidity dried up before we could turn around the operations in the face of challenging industry conditions and an economy in recession."
Simon officials also outlined several other aspects of the filing.
Employees will be paid in the usual manner and their health and other welfare benefits are expected to continue without disruption.
The company says its 401(k) plan is protected by federal law and is not subject to the bankruptcy filing. They say they will continue to administer the plan as usual, but they note company stock will no longer be an investment option.
During the reorganization process, the company says vendors, suppliers, and other business partners will be paid under normal terms for goods and services provided during the reorganization.