The Georgia-based trucking company Trism has filed for bankruptcy protection and is getting a new leader.
On Tuesday, the carrier announced it filed a petition for voluntary reorganization of its operations under Chapter 11 with the U.S. Bankruptcy Court.
In a written statement, Trism said, “Several factors led to the company's Chapter 11 filing, including high fuel costs for recent periods, difficulty in obtaining qualified drivers, industry-wide increases in insurance premiums and reduced shipping demand.”
The company says it expects to operate as debtor-in-possession and continue business as usual pending a sale contemplated by the company and being approved by the bankruptcy court. Trism also says it will be filing motions with the court seeking approval of the continuation of compensation and benefit plans, and payment of funds due to certain suppliers of essential goods and services.
The news should come as little surprise in light of published reports indicating the company has not been profitable in two years.
Trism also announced Tuesday that President and CEO Thomas P. Krasner has resigned. The Board of Directors has named Ralph S. Nelson to take his place. Nelson has been Executive Vice President and General Counsel of the company. The board also appointed Tom McGoldrick as Vice President and Chief Financial Officer.
The shakeup in management follows news last month that Trism terminated the employment of treasurer/controller Gerald Hendren after it discovered that company assets had been overstated.
This latest bankruptcy filing by Trism is the second in two years for the company, which was rated as one of the 100 largest earlier this year, before falling on hard times that resulted in big cutbacks.
In September, Trism sold its logistics operations back to the original owners and in August announced it was getting out of the specialized/heavy haul business by closing its Specialized Division.
Tuesday’s announcement still leaves the company with environmental and secured materials hauling such as transporting hazardous waste, explosives, military munitions and radioactive materials.