A trucking company files for Chapter 7 bankruptcy and suddenly closes its doors

When a trucking company closes, it usually has a downtime period when it delivers any remaining loads in its possession. Failure to do so leaves thousands of people in limbo, as they do not know whether their orders will arrive or not.

The problem can be exacerbated when delivered items have an expiration date or may become less valuable, or even worthless, if they remain.

In some cases, items in mid-transport become a bigger problem, as customers pay for the delivery, but whoever ends up owning the assets of the bankrupt shipping company is not obligated to deliver.

A similar problem arose when furniture company Mitchell Gold + Bob Williams went bankrupt in 2023. Customers paid for delivery, but that amount was not sent to its shipping partners.

Ultimately, the bankruptcy court allowed Ryder Last Mile and other shipping companies to charge customers again if they wanted to pick up their goods.

In the case of Montgomery Transportation, which filed for Chapter 7 bankruptcy protection on October 9 and promptly closed, the fate of its warehouse and transit deliveries remains in limbo.

Montgomery Transport LLC, a flatbed trucking company based in Birmingham, Alabama, filed for Chapter 7 bankruptcy and immediately ceased operations. This leaves about 1,000 employees out of work, and the fate of anything the company was shipping is uncertain.

The company described its business on its website.

“Montgomery Transport is the nation’s leading flatbed carrier specializing in the safe transportation of multi-dimensional freight. Our company is built around understanding the unique needs of our customers and drivers. This means state-of-the-art safety technology, well-maintained equipment, high quality standards, and strong relationships.”

This is then followed by a statement that is now empty, given the filing for Chapter 7 bankruptcy and the abandonment of its remaining payloads:

We treat every move like it’s the most important on the road – because it is to us.

• Montgomery Transport LLC (based in Birmingham, Alabama) filed for the suit Chapter Seven Bankruptcy It stopped working immediately.

• The submission was A Failed sale For P&S Transportation Company.
  source:LinkedIn

• almost 1000 employees They are now out of work as a result of the closure.

• “This is the largest trucking bust this year,” Craig Fuller, a freight industry expert, said in a post on his website. XPrevious Twitter.

• The sudden closure indicates that there is no “liquidation period.” Operations ceased as of bankruptcy.