Major trucking co. Celadon files for bankruptcy; About 3,000 jobs lost

The news means most of the company’s 3,800 workers are losing their jobs, 2,500 of whom are truckers. (Source: WISH/CNN)

INDIANAPOLIS, Ind. (WISH/CNN) - One of the largest trucking companies in the U.S. has filed for Chapter 11 bankruptcy and plans to shut down nearly all of its business operations.

Celadon Group, based in Indianapolis, filed for bankruptcy early Monday morning.

The news means most of the company’s 3,800 workers are losing their jobs, 2,500 of whom are truckers.

The international company's financial trouble came to light two years ago, when executives were accused of cooking the books and misleading shareholders.

The company reached a deal with federal authorities to repay 42 million dollars, but it still owes 33 million more.

Last week, a U.S. attorney charged Celadon’s former chief operations officer and chief financial officer with securities fraud, bank fraud and lying to auditors.

Investigators accuse them of doctoring their books to hide that the company's value dropped by tens of millions of dollars in 2015 and 2016.

One truck driver now out of a job says he holds no animosity towards the company.

“It’s not really Celadon’s fault,” Arcadio Caraballo said. “As far as I know they treated every one of us well, right up to the last minute, so it’s not really Celadon’s fault that there were a couple of bad apples a couple years ago.”

The CEO says “enormous challenges in the industry” also contributed to the bankruptcy.

The company plans to liquidate all its global operations, except for its Taylor Express’ subsidiary in North Carolina.

Copyright 2019 WISh via CNN. All rights reserved.



 
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