STG Logistics Declares Bankruptcy Amid ‘Great Freight Recession’
STG Logistics, a prominent trucking company based in Dublin, Ohio, has declared bankruptcy amid what analysts are calling the “Great Freight Recession.” This situation reflects a significant downturn in demand for shipping services, even as operational capacity remains high.
Bankruptcy Details
On Monday, STG Logistics filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of New Jersey. This filing comes after nearly 50 years in the industry.
Financial Overview
- Company Name: STG Logistics
- Location: Dublin, Ohio
- Debt: Nearly $1 billion
- Debt Reduction: 91% through bankruptcy process
- New Capital: $114 million for operations
The restructuring plan is designed to eliminate most of the company’s debt and provide necessary capital to sustain core operations and compensate employees and vendors.
CEO’s Statement
Geoff Anderman, CEO of STG Logistics, stated, “Today’s announcement marks an important milestone in our efforts to strengthen STG amidst one of the most severe freight recessions in history.” He emphasized confidence in leveraging the Chapter 11 process for long-term growth.
Future Outlook
According to reports from TTNews.com, STG Logistics anticipates emerging from bankruptcy court protection within approximately five months. The company reassured stakeholders that operations will continue normally during this restructuring phase.
Further details on the bankruptcy proceedings will be released in due course, as STG Logistics navigates this challenging period in the freight market.
