US trucker Jevic files for bankruptcy, shuts down

Source: Reuters

NEW YORK, May 21 (Reuters) - U.S. trucking company Jevic Transportation Inc has filed for bankruptcy protection because of the tight credit market and high costs including the price of fuel, and has stopped its operations, according to its website.

Jevic, which specialized in less-than-truckload (LTL) shipments, was bought by an affiliate of private equity firm Sun Capital in July 2006.

The company, which employed about 1,500 people, filed for protection from creditors late on Tuesday in U.S. Bankruptcy Court in Delaware.

"The current high fuel costs, economic downturn, increasing insurance costs, and tightening credit markets have made this decision necessary," Jevic's chief executive David Gorman said in a statement on its website.

Trucking companies have been hit by soaring fuel prices, with diesel used for big-rig trucks costing more than $4 a gallon.

Read more: http://www.reuters.com/article/bondsNews/idUSN2141676920080521

It's cheaper for him to stay home and not drive than it is to work. Several thousand $$ to fill the tanks. So he isn't working.

Filled up in Allentown PA, 4.77 gal. Under a load, I average 5.5mpg.

It costs me $0.86 a mile just for diesel fuel.

Freight rates right now are abysmal, and barely cover operating expenses.

Call your senators and representative to support the TRUCC Act, bipartisan effort by Sen. Sherrod Brown and Olympia Snowe, for truth and transparency in freight brokering, and passing along fuel surcharges to the people that actually buy the fuel.

Right now, many brokers are charging shippers a fuel surcharge, and then keep it for themselves. There is no law that says they have to pass it on, even though it is unethical.

Brokers are making a killing, and at the same time are killing the independent and small business, family owned trucking companies.

He said that they had plenty of freight to move, the real reason they are shutting down is the private equity group that purchased them from Yellow Freight saw that the real estate the company owned was worth a fortune. They had some brand new freight terminals in metropolitan areas that sat on some desirable ground.

They sold off their terminals for cash and a short-term windfall profit. The trucks and trailers are basically not worth anything except whatever Jevic could get at auction, as there is a glut of equipment on the market right now.

Jevic was a profitable on-going concern until the private-equity pirates got hold of them, with no intention of running a trucking business.


Hooray for buccaneer capitalism.

The thing we had was a brand name and brand loyalty and customers like Walmart and Michaels. They wanted to buy the company from creditors, sell off the assets then sell the brand name to a competitor.

His shop hasn't had work for over a month. His union leaders have been holding lots of closed door meetings lately and he is very very scared. I'm scared for him.

Particularly, which countries their "capital" comes from.

From wiki --

Sun Capital Partners, Inc. is a private investment firm focused on leveraged buyouts, equity, debt, and other investments in market-leading companies. Sun Capital affiliates have invested in and managed more than 145 companies worldwide with combined sales in excess of $35.0 billion since Sun Capital’s inception in 1995. Sun Capital has offices in Boca Raton, Florida, Los Angeles, California, New York, New York, London, and Shenzhen.

The firm's portfolio includes many regionally and nationally recognized companies, such as Bruegger's Bagels, Boston Market, Exopack, Marsh Supermarkets, Fazoli's Restaurants, Wickes Furniture, Nationwide Furniture, Mervyn's department stores, Anchor Blue Clothing Company, ShopKo, Pamida discount store chains, Smokey Bones and Hickory Farms.

that is a lot of jobs lost at a time when we can't afford to lose them. this reminds me of the 80's but way worse. i'll be praying for you truckers and i will be contacting my elected officials.