Despite its efforts to reorganize, it appears Cold Carriers Logistics and its entities plan to cease operations at the end of February, according to some truck drivers who worked there.
Private equity firm KJM Capital Transportation Fund LLC, which owns Cold Carriers Logistics and six other affiliates, filed for Chapter 11 bankruptcy protection in late September 2019, a move that impacted around 340 truck drivers.
It appears the company's plan to reorganize is now being converted into a liquidation plan after its owners failed to secure a buyer by its Jan. 16 deadline.
One driver, who didn't want to be named, told FreightWaves he was notified on Feb. 4 that his job was ending on Feb. 29.
One news outlet, Freightbrokerlive.com, reported earlier that truck drivers for Cold Carriers were reporting the company was ceasing operations on social media.
Cold Carriers' bankruptcy attorney R. Scott Shuker stated in a recent audio hearing that the company originally had three investors interested in the refrigerated company, but that none came through with "either new money or a new financing deal" by Jan. 16, the deadline agreed upon by some of its creditors.
Shuker said it was banking on one "long shot" investor, but that the deal fell through prior to the hearing in late January.
"We had one final party that we were working with and had a letter of intent, and ultimately, they just backed out," Shuker told the U.S. Bankruptcy Court for the Middle District of Florida on Jan. 28.
He then suggested the court approve a manager to "wind down operations" of the company.
Shuker said the wind-down would affect three operating trucking companies, including
Interide Transport, which had 106 employees, Sunco Trucking, which was the largest entity with 142 employees and 62 independent contractors, and Gantt Trucking, which had about 90 employees.
This is a developing story.
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