When facing financial tribulations, companies can easily start to experience major issues. In some cases, those issues may result in businesses needing to close stores or shut down operations altogether. In many instances, those financial woes lead to business owners filing for Chapter 11 bankruptcy protection.
Louisiana readers may be interested in a bankruptcy filing for a trucking company in another state. Celadon Group filed for Chapter 11 due to numerous financial setbacks, including allegations of fraud against the company’s former president and COO as well as the CFO. The company agreed to pay $42.2 million to settle the allegations. However, it was also noted that issues with the trucking industry as a whole led to financial problems for the company.
Celadon Group reportedly employs approximately 4,000 workers, and as part of their bankruptcy case, they will close all operations. As a result, over 3,000 truck drivers are left without jobs, and many were stranded because their company gas cards were canceled. In addition to drivers, hundreds of administrative employees were expected to lose their positions as well. The report also stated that 640 other trucking companies filed for bankruptcy during the first half of the year.
Though it can be hard for company owners to decide to shut down operations due to the impacts it can have on their employees, some financial issues cannot be overcome without such actions. Chapter 11 can help struggling companies address their financial liabilities and determine their best courses of action for moving forward. If Louisiana business owners are facing serious financial concerns, they may wish to look into whether bankruptcy could be right for their companies.