NORTH CAROLINA, USA — Yellow Corp. has halted operations Sunday and will lay off all 30,000 of its workers.
It's a 99-year-old trucking company that was once a dominant player in its field.
There are nine locations in the Triad that will shut down Sunday, according to state records.
Yellow, formerly known as YRC, was one of the largest transporter of goods across the country.
CBS News reported that the company is more than $ 1 billion dollars in debt and plans to file for bankruptcy.
The unionized company has been in a battle with the Teamsters Union, which represents about 22,000 drivers and dock workers at the company. Just a week ago the union canceled a threatened strike prompted by the company failing to contribute to its pension and health insurance plans, CBS reported.
The union granted the company an extra month to make the required payments.
The shutdown comes after Yellow failed to reorganize and refinance the roughly $1.5 billion dollars it had, as of March, in outstanding debt, a large portion of which came from the $700 million pandemic-era government loan.
At the time of the loan, the company was facing charges of defrauding the government by overbilling on shipments for the U.S. military.
It ultimately settled the lawsuit and agreed to pay the Defense Department nearly $7 million.
Yellow employed about 30,000 people as of the end of 2020, a company filing shows. That figure is likely smaller now after "a large number" of Yellow employees received layoff notices on Friday.
Some of its largest clients, including retailers Walmart and Home Depot, and logistics platform Uber Freight have already halted shipments to the failing carrier company to prevent goods from being lost or abandoned in the event of bankruptcy.
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