Consolidated Freightways to Close, Cut 15,500 Jobs
Consolidated Freightways Corp., the third-biggest U.S. trucker, said it’s shutting down operations and plans to file for Chapter 11 bankruptcy tomorrow, resulting in the loss of about 15,500 jobs.
More than 80 percent of those workers will be fired immediately, and the remainder will be “phased out,” the company said in a statement distributed by Business Wire.
Consolidated Freightways, which has had losses for seven straight quarters, named management consultant John Brincko Chief Executive Officer in May, replacing Patrick Blake. Consolidated lost $104.3 million last year, while larger rivals Yellow Corp. and Roadway Corp. were profitable.
“Without the availability of further financing, the board of directors reluctantly concluded that the company simply could not continue to operate, pay employees and meet its obligations,” Brincko said in a statement. Company officials weren’t immediately available to comment.
Operations of the company’s CF AirFreight and Canadian Freightways, Ltd. units are continuing normally, and their employees will keep their jobs, the company said.
