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Yellow, formerly called YRC Worldwide, did not immediately
respond to a Reuters request for comment.
Earlier this month Yellow averted a threatened strike by 22,000
Teamsters-represented workers and last week it said it was
exploring opportunities to divest its third-party logistics
company.
"Yellow has historically proven that it could not manage itself
despite billions of dollars in worker concessions and hundreds
of millions in bailout funding from the federal government,"
Teamsters General President Sean M O'Brien said in a statement.
The company was the third-biggest U.S. trucker specializing in
the less-than-truckload segment that combines shipments from
different customers in the same trailer.
Its customers included large retailers like Walmart and Home
Depot, manufacturers and Uber Freight, some of which paused
cargo shipments to the company for fear those goods could be
lost or stranded if the carrier went bankrupt.
The company said in June that the Teamsters Union was blocking
restructuring and modernization efforts, collectively known as
"One Yellow", which it said were critical for Yellow's survival
and ability to refinance about $1.3 billion of debt due to be
repaid by 2024.
Part of that debt is a $700 million pandemic relief loan
provided in 2020 by the Donald Trump-led U.S. government in
exchange for a 30% stake in the Nashville, Tennessee-based
company.
Earlier in the day, the Wall Street Journal reported the closure
of the trucking firm's operations citing notices sent to
customers and employees. On Friday, the WSJ also reported that
the company has laid off a large number of nonunion workers.
(Reporting by Yana Gaur, Urvi Dugar and Bharat Govind Gautam in
Bengaluru; Editing by Chris Reese, Stephen Coates and Nivedita
Bhattacharjee)
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