Freight bankruptcies pile up as carriers, logistics firms seek court protection

Financial pressure continues to ripple through the U.S. freight and logistics industry, with a new wave of bankruptcy filings affecting trucking companies, freight forwarders, distributors, warehouses and other supply-chain businesses.

At least 21 transportation and logistics-related companies included in bankruptcy filings reviewed by FreightWaves sought either Chapter 7 liquidation or Chapter 11 protection between July 27 and Aug. 25.

The businesses range from one-truck carriers to major distributors with hundreds of millions of dollars in assets and liabilities. Together, the filings illustrate how uneven financial stress remains across the freight economy, affecting smaller trucking operators as well as larger logistics and distribution companies.

Among the largest cases is BFG Supply Co. LLC, an Indianapolis-based distributor serving the horticultural and agricultural sectors. The company filed for Chapter 11 protection in Delaware on Aug. 18, estimating both assets and liabilities at between $100 million and $500 million. Its filing also identified more than 100,000 creditors.

BFG operates a nationwide network of 15 warehouses and carries more than 100,000 SKUs sourced from more than 1,000 manufacturers. According to information submitted with the bankruptcy filing, the company had approximately 454 employees as of April.

Trucking companies face mounting pressure

Several of the bankruptcy cases involve small trucking companies operating with only a handful of power units.

Anchor South Transport LLC, based in Albertville, Alabama, filed for Chapter 11 protection on July 28. The carrier operates 14 trucks with 12 drivers and reported nearly $1.4 million in assets against approximately $2.2 million in liabilities. Banks and other financial institutions hold secured claims linked to its equipment.

Court schedules put Anchor South’s assets at $1.396 million, including more than $1.1 million in machinery, equipment and vehicles.

Black Lion Transportation and Truck Repairs LLC of Peachtree Corners, Georgia, filed for Chapter 11 on July 29. The company estimated both assets and liabilities at between $100,001 and $500,000 and elected to use Subchapter V, a streamlined Chapter 11 process available to qualifying small businesses.

Its creditor list includes Renasant Bank, which held claims associated with a 2023 Peterbilt 579 and two 2023 Great Dane trailers. The filing also identifies tax, toll and other business debts.

Kings of the Road Transport LLC, based in Sanford, Florida, opted for Chapter 7 liquidation on July 28. Court schedules show $77,000 in assets, all consisting of machinery, equipment and vehicles, compared with $393,380 in liabilities.

Stoneman Trucking LLC of Breckenridge, Michigan, filed for Chapter 11 protection on Aug. 11 and also elected Subchapter V treatment. Its schedules show approximately $1.03 million in assets against $892,187 in liabilities, including $774,000 in secured claims and $118,187 in nonpriority unsecured claims.

PLR Transport Inc. of Pembroke Pines, Florida, recorded one of the most pronounced gaps between assets and debt among the trucking cases. The company filed for Chapter 7 on Aug. 21 with only $21,520 in assets and nearly $5.33 million in liabilities. More than $5.25 million of that total consisted of nonpriority unsecured claims.

PJM Distributors LLC of North Miami Beach, Florida, also sought Chapter 7 protection, filing on Aug. 12. Its schedules list $125,086.94 in assets and $464,342.13 in liabilities. The company told the court that no funds are expected to remain for unsecured creditors once administrative expenses have been paid.

Other small carriers seeking liquidation included Aneiro’s Trucking LLC of Moreno Valley, California; R3 Hauling LLC of Northbrook, Illinois; AP Freight Inc. of Lake Zurich, Illinois; and DD Freight Express Inc. in the Chicago area.

Aneiro’s operates six trucks with six drivers and listed assets of up to $100,000 against liabilities between $100,001 and $1 million. R3 Hauling, a one-truck carrier, reported the same asset and liability ranges. AP Freight, also a one-truck operation, reported both assets and liabilities of no more than $100,000.

DD Freight Express filed Chapter 7 on July 27. Federal records had previously shown 40 power units and 40 drivers, although its bankruptcy filing lists eight tractors among its owned assets. The company reported at least $223,000 in assets and just $2,930 in liabilities.

Financial stress spreads to forwarding and warehousing

The latest filings are not confined to motor carriers. Freight forwarding, cross-border logistics, warehousing and distribution businesses are also facing financial strain.

Jet-Speed Logistics (USA) LLC, an international freight forwarder and customs broker, filed for Chapter 11 protection in Illinois on Aug. 25. It estimated assets between $50,000 and $100,000 and liabilities between $1 million and $10 million, with between 200 and 999 creditors.

The company continues to provide international freight forwarding and customs brokerage services and operates as a licensed non-vessel operating common carrier under the Jet-Speed Ocean Line name.

Inclusive Logistics LLC, a cross-border logistics provider based in El Paso, Texas, filed Chapter 11 on Aug. 8. It estimated both assets and liabilities at between $1 million and $10 million and reported between 50 and 99 creditors.

The company operates two warehouse facilities totaling approximately 113,000 square feet. Its activities include foreign trade zone services, customs operations and ocean transportation intermediary services along the U.S.-Mexico trade corridor.

Royal Cold Storage Inc., a refrigerated warehousing company based in Beverly Hills, California, filed Chapter 11 on Aug. 25. It listed both assets and liabilities below $50,000 and reported between one and 49 creditors. Historically, the company operated a 118,000-square-foot facility with capacity for 14,500 pallet positions.

Other Chapter 11 filings during the period included America Enterprice LLC, a long-distance truckload carrier in Zuni, Virginia; Great Southern Copackers LLC, a beverage contract manufacturer in Lakeland, Florida; Emil’s Produce Corp., a Brooklyn produce wholesaler; NJS Partners Inc., a New York seafood wholesaler; ML Imports Inc., a New Jersey consumer goods distributor; and The Power of Peek Trucking Company LLC of Lithonia, Georgia.

ML Imports’ bankruptcy followed substantial litigation. Compiled records indicate that the company had faced court-ordered disgorgements arising from litigation involving diverted corporate opportunities and trademark infringement. It listed both assets and liabilities between $1 million and $10 million.

The Power of Peek, meanwhile, operates only two trucks. It filed for Chapter 11 with estimated assets between $500,000 and $1 million and liabilities between $100,000 and $500,000.

Bankruptcy filings from July 27 through Aug. 25

The breadth of the filings shows that the financial strain is not limited to one segment of the freight market. From small, owner-operated trucking businesses to large-scale distribution networks, companies continue to confront debt, liquidity constraints and the challenges of restructuring in a difficult operating environment.