Bankruptcies and layoffs slam wide range of transportation companies
Supply chain businesses ranging from rail to trucking to warehousing saw layoffs and bankruptcies throughout April, as tariffs and other economic factors slam freight markets. The post Bankruptcies and layoffs slam wide range of transportation companies appeared first on FreightWaves.
Layoffs and bankruptcies hit multiple sectors of the supply chain throughout April, as new or soon-to-be-imposed tariffs continue to weigh on freight markets.
Truck & Trailer Leasing Avenue
Truck & Trailer Leasing Avenue of Joliet, Illinois, filed for Chapter 11 bankruptcy on April 16 in the U.S. Bankruptcy Court for the Northern District of Illinois.
The company stated in the petition that it has both assets and liabilities of $10 million-$50 million and said that money would be available to pay unsecured creditors. The largest unsecured creditors are Bank Midwest of Kansas City, Missouri, owed about $818,000, and De Lage Landen Financial Services, owed about $623,000.
The filing marks Truck & Trailer Leasing’s second Chapter 11 case in just over a year, following a bankruptcy filed on March 21, 2024.
FreightWaves could not reach Truck & Trailer Leasing Managing Member Sergiu Tintiuc, and a law firm representing the company did not immediately return a phone call seeking comment.
Starr Rail
Starr Rail of Cooper, Texas, filed for Chapter 11 bankruptcy on April 11 in the U.S. Bankruptcy Court for the Northern District of Texas.
The company, which provides rail-to-truck and truck-to-rail transloading, as well as warehousing, contract packaging and last-mile dedicated trucking, has both assets and liabilities of $1 million-$10 million, according to the bankruptcy petition.
No funds will be available for unsecured creditors after administrative expenses are paid, according to the filing. The creditors with the largest unsecured claims are Canada’s CPKC railroad, owed about $220,000, and Kiamichi Railroad of Southlake, Texas, owed about $133,000.
A call to Starr Rail on Wednesday morning was unanswered.
LML Logistics
LML Logistics of Ocala, Florida, filed a Chapter 11 bankruptcy petition on Friday in the U.S. Bankruptcy Court for the Middle District of Florida.
The company stated in the petition that it has assets totaling $100,000-$500,000 and liabilities of $1 million-$10 million. Funds will be available for unsecured creditors, the largest of which are Farm Credit of Florida, owed about $794,000, and the Small Business Administration Economic Injury Disaster Loan program, owed about $107,000, according to the filing.
LML has 10 power units and 16 drivers, according to the Federal Motor Carrier Safety Administration’s SAFER website. It carries general freight, building materials, fresh produce, meat, refrigerated food and other products.
LML Logistics could not immediately be reached for comment.
Accelerate360
Magazine distributor Accelerate360 Distribution filed a Worker Adjustment and Retraining Notification on Friday on its plan to close its Dakota Merchandising Work location in Sioux Falls, South Dakota.
A total of 324 permanent layoffs will result, including 22 people who work at a facility in Missouri, according to the notice.
“The employer anticipates that all employees who work in the Dakota Merchandising function will be laid off as a result of the work unit closure on June 28, 2025,” the WARN notice stated. “The decision to close the unit is due to these positions being outsourced.”
Jannine Clemons, vice president of human resources for Accelerate360, told FreightWaves in a phone interview that the jobs were primarily held by part-time workers and that the work would be taken over by another provider.
Kadam Logistics Corp.
Kadam Logistics Corp. of Chicago filed a Chapter 11 petition on April 4 in the U.S. Bankruptcy Court for the Northern District of Illinois. The company lists both assets and liabilities of $100,000-$500,000.
Kadam has a number of unsecured creditors, the largest of which are First Federal Bank & Trust of Sheridan, Wyoming, owed $98,000, and Transportation Alliance Bank of Ogden, Utah, owed about $84,000. The petition stated that funds will be available to pay unsecured creditors.
A notice of financial conditions filed with Kadam’s petition showed decreasing gross revenue the past few years. Revenue fell from about $1.5 million in 2023 to less than $1.1 million in 2024 and was at $360,000 so far in 2025.
A voicemail left at a number listed for Kadam Logistics was not returned on Wednesday, and an attorney representing the company in the bankruptcy did not immediately return a message.
Sweet Trucking Co.
Sweet Trucking Co. of Knoxville, Tennessee, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Eastern District of Tennessee on April 21.
Sweet Trucking’s gross revenue has fallen each of the past three years: about $2.7 million in 2022, roughly $2.3 million in 2023 and about $2.1 million in 2024.
The petition states the company has both assets and liabilities of $1 million-$10 million, and that funds will be available for unsecured creditors.
Among the largest unsecured creditors are the IRS, owed $75,000, Thompson Truck Leasing, owed about $67,300, and Truist Bank, owed about $51,500.
The SAFER website states that Sweet Trucking has 10 power units and 12 drivers. It carries metal, lumber, machinery and other goods.
The company did not immediately respond Wednesday morning to a request for comment.
Related:
Trucking and logistics bankruptcies reported across US
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