Another industry giant collapses. Convoy is keeping its doors closed as Yellow seeks to pull off the largest transportation industry auction ever created.
Another of the industry giants is facing a difficult time for the company and its employees. This is Convoy Inc., a company that is valued at $3.8 billion and last year raised more than $150 million. Yesterday, this company closed its doors waiting for a possible buyer. According to the latest information available, most of its employees were laid off in what translates into a second major blow for industry workers so far in 2023. It should be remembered that Yellow filed for bankruptcy weeks ago.
In The Seattle Time the company published a statement announcing that Convoy was “preparing our business for a transition and we will have more information in the next 48 hours.” Hours later the company closed its doors and the CEO, Dan Lewis, sent another statement, but – this time – to his employees.
“After an exhaustive process, spanning many, many months during which we explored all viable strategic options for the business, the result is where we find ourselves today. Convoy is closing the doors to its current core business operations and exploring and evaluating options strategic for what could come next,” the executive explained.
“We hoped this day would never come. However, none of the options ultimately materialized into something sufficient to maintain the company in its current form,” he remarked.
The company opened its doors in 2015 when Gran Goodale and Dan Lewis created it. At its peak it had 1,500 employees. Many of them were fired over time until they only had 500.
Recently, Convoy Inc. hired an investment company with the idea of finding a solution to the situation it is in or achieving a sale. Something that did not materialize.
The company has not yet made any announcements about what happened on its social networks or official page. At the moment Convoy presents itself as follows: “Convoy is the country’s leading digital cargo network. We move millions of trucks across the country through our connected network of carriers, saving carriers money, increasing drivers’ profits, providing elastic capacity to middlemen, and eliminating carbon waste for our planet… Fortune Carriers 500 companies such as The Home Depot, P&G, Niagara and Unilever trust Convoy to reduce costs, increase logistics efficiency and achieve environmental sustainability goals.”
Is the Yellow auction coming?
The latest information indicates that Yellow Corp would use auction houses to sell all the part-load material of the company that filed for bankruptcy. Lawyers representing Yellow would seek to retain Nations Capital, Ritchie Bros, Auctioneers and Iron Plantet Canada LTD.
These companies, according to the documents accessed by Transport Topic, will: “act as exclusive marketers, brokers and auctioneers of the debtors’ rolling stock assets.”
The capital of the company is not less. This involves almost 13 thousand tractors and 42 thousand trailers. There is one detail to take into account: if this auction takes place, it would be the largest rolling stock auction ever recorded in the country.
One of the lawyers’ main objectives would be to accelerate this sale to eliminate storage costs and obtain liquidity. However, it will be bankruptcy judge Craig Goldblatt who decides the future of this immense fleet. Something that will happen on October 23rd.
What happens if the auction plan is approved? The administrators of these companies have 45 days to advertise the event, transport and store the trucks and trailers.
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