Yellow Trucking Faces Bankruptcy

U.S. trucking firm Yellow is reportedly preparing to file for bankruptcy due to financial difficulties and issues with union negotiations. Customers have been abandoning the company amid a cash crunch, further exacerbating the situation. While no final decision has been made, Yellow might seek bankruptcy court protection as early as this week. The company recently avoided a strike by compensating over $50 million in owed worker benefits and pension accruals to its 22,000 Teamsters-represented employees. Some of Yellow's major customers, including Walmart, Home Depot, manufacturers, and Uber Freight, have halted cargo shipments to the company to safeguard against potential losses or disruptions in case of bankruptcy. In 2020, the company received a $700 million pandemic relief loan and granted the government a 30% stake in exchange for financial support.