Yellow Corp, formerly known as YRC Worldwide, has faced a dire financial crisis, leading to the cessation of its operations. The Yellow trucking firm bankruptcy stemmed from their  inability to restructure and refinance its substantial debt, exceeding a billion dollars, forced it to insolvency. This move came after failed attempts to manage its financial turmoil, despite receiving bailout funding from the federal government and making worker concessions.

Teamsters Union’s Perspective

Sean M O’Brien, the General President of the Teamsters Union, highlighted Yellow’s historical mismanagement despite significant financial support. The inability to navigate these challenges underscores the extent of the crisis that led to the Yellow trucking firm bankruptcy.

Operational Challenges and Industry Consequences

As the third-largest trucking company in the U.S. specializing in less-than-truckload shipments, Yellow had a pivotal role in transporting goods for major retailers like Walmart and Home Depot, as well as manufacturers and Uber Freight. Concerns emerged over potential losses or disruptions in cargo shipments to Yellow, prompting some customers to halt business dealings.

Role of Teamsters Union and Debt Restructuring

Yellow’s attempt at restructuring and modernization, termed “One Yellow,” was thwarted by the Teamsters, according to the company’s claims. These efforts were crucial for Yellow’s survival and its ability to refinance a substantial debt of approximately $1.3 billion by 2024. Notably, this debt included a $700 million pandemic relief loan from the U.S. government, which granted stake in the company.

Impact on Workers and Closure of Operations

Notices sent to customers and employees confirmed the shutdown of Yellow’s operations, as reported by The Wall Street Journal. The company’s non-union workers faced significant layoffs, further highlighting the severity of the crisis. Additionally, the closure of YRC Freight Canada, a Yellow subsidiary, resulted in the suspension of work for 128 union members.