Detroit carrier joins distributor in large-scale bankruptcy
A Detroit-based grocery-hauling company with over 300 trucks has filed for bankruptcy alongside several partner companies. The post Detroit carrier joins distributor in large-scale bankruptcy appeared first on FreightWaves.
A Detroit-based grocery-hauling company with over 300 trucks has filed for bankruptcy alongside several partner companies.
SFD Transportation filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Northern District of Texas on Monday. The filing was in Texas because a bankruptcy case concerning an affiliate of the debtor was already pending there.
According to the filing obtained by FreightWaves, SFD estimated it has between 5,001 and 10,000 creditors, with liabilities totaling between $500 million and $1 billion. The company estimated it has between $1 billion and $10 billion in assets.
SFD Transportation joins 11 other subsidiaries and parent company Del Mar Holding LLC in filing jointly for Chapter 11 bankruptcy protections. All businesses involved are:
- Cascade Food Brokers Inc.
- Del Mar Acquisition Inc.
- Del Mar Holding LLC
- Hamilton Meat LLC
- Harvest Meat Co. Inc.
- Harvest Sherwood Food Distributors Inc.
- Lamcp Capital LLC
- SFD Acquisition LLC
- SFD Co. LLC
- SFD Transportation Corp.
- Sherwood Food Distributors LLC
- Surfliner Holdings Inc.
- Western Boxed Meat Distributors Inc.
According to the filing, these debtors have moved for joint administration of the cases under one Chapter 11 case number assigned to the subsidiary Harvest Sherwood Food Distributors. Harvest Sherwood shut down operations on April 21, laying off 1,500 workers.
An involuntary Chapter 7 petition was filed against Sherwood Food Distributors on April 18 in the Bankruptcy Court for the Eastern District of Michigan. The filing stated that the debtors anticipate this case will be dismissed with the consent of the petitioning creditors after the start of the Chapter 11 case.
Eric Kaup, Sherwood’s chief restructuring officer, signed off on behalf of SFD Transportation in this filing.
Top creditors listed in SFD Transportation’s bankruptcy filing are Burford Capital ($35 million) in Chicago, National Beef Packing Co. ($15.5 million) in Kansas City, Missouri, and Tyson Foods ($13 million) in Springdale, Arkansas.
According to SAFER data, SFD Transportation carries general freight, fresh produce, meat, refrigerated food and paper products. The company has 308 power units and employs 262 drivers.
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