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Another giant down! It was the core supplier of Walmart and Home Depot

2023-10-20

On August 6, local time, Yellow, a century-old trucking company in the United States, announced that the company has filed for bankruptcy protection in the Delaware District Bankruptcy Court. On July 30, the company closed its operations and laid off a large number of workers.

Yellow's CEO blamed the union for the company's failure when he filed for bankruptcy protection: "For the past nine months, we have been bullied and sabotaged by the Teamsters. We are deeply disappointed that Yellow has announced its closure after nearly 100 years in business."



Yellow is one of the major trucking companies in the United States and the third largest less-than-trucking (LTL) company, with approximately 30,000 employees across the United States. The company is also the nation's largest less-load trucking union employer, with 22,000 Teamsters drivers. Before its collapse, Yellow had an estimated 8 to 10 percent market share in the United States and was a core logistics provider for Walmart, Home Depot, and Uber Frieght. At one point earlier this year, Yellow was doing nearly 50,000 trips a day.



Trucks and trailers parked at Yellow on July 30 Yellow has been at risk of bankruptcy several times over the past two decades. In 2010, the Teamsters union agreed to wage and benefit cuts that saved the company from bankruptcy. Mounting debt and a standoff with the Teamsters were the final straw for the century-old company.


Yellow listed 30 unsecured creditors in its bankruptcy filing, including BNSF Railway, North America's largest freight rail network, Amazon and Home Depot. Yellow's collapse also left the Central States Pension Fund without a major funder.

Trucking industry insiders said Yellow's bankruptcy could lead to a short-term increase in less-than-carload shipping costs. Analysts say shipping prices could rise 20 to 25 percent per pound.