An unexpected company is now laying off in Texas due to a surprising closure followed by a Chapter 7 liquidation bankruptcy.
Trucking company Arnold Transportation Services is shutting the doors to its Grand Prairie headquarters and laying off 157 workers in the process, reports The Dallas Morning News.
It’s the latest in a series of issues for Arnold Transportation and its parent company, reports the paper.
Arnold Transportation was acquired by Canada-based Pride Group Logistics in 2022, but Pride Group recently filed for bankruptcy and owes a whopping $637 million to over 20 different lenders.
Arnold Transportation was among Pride Group’s companies that hoped it would be able to find enough funding to keep its Grand Prairie facility open, but those efforts ultimately failed, according to layoff notices filed with the Texas Workforce Commission.
Pride Group tried to restructure its business and finances through a Canadian law called the Companies’ Creditors Arrangement Act.
The law allows for a company to work through troubling financial times by creating a plan with its creditors.
That could allow creditors to control a company’s property while the company continues to work like normal, according to Thomson Reuters.
“The Company had hoped to restructure in the course of the CCAA proceeding and obtain new business and/or obtain funding, including funding for benefits and payroll, by pursuing a transaction or restructuring that would have enabled it to continue operations and to prevent the closing of the facility but was unable to do so,” the letter said.
The Grand Prairie facility, located at 3375 High Prairie Road, officially closed Tuesday. In addition to cutting employees, the company said it has been unable to provide any workers with a medical and drug plan since April 19.
Arnold attributes the short notice to lacking the capital to pay for its operating expenses and wages to workers, the letter said.
“The company also pursued options for securing a purchaser of the facility, which would have allowed the facility to remain open and operating, but was unable to secure a purchaser on an urgent basis in light of liquidity constraints,” it said.
“The plant closing was not reasonably foreseeable at the time notice would have otherwise been required.
In addition, notice is further excused because the business is being liquidated.”
Arnold’s employees will soon be looking for new jobs.
But the problems are only continuing for Pride Group.
The company, which employs approximately 500 people, may soon be facing a $100 million lawsuit from Mitsubishi HC Capital over defaulting on its payments.
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Also Read: A Massive Grocery Chain With 400 Stores Is Now Closing
Other Economy News Today
A popular Italian restaurant now announces an unexpected closure after nine years in business, according to an email sent to customers.
Italian Eatery, located in south Minneapolis, Minnesota, told its long-time customers that it planned to shut its doors.
The beloved restaurant, also known as ie, also plans to close its sister restaurant un dito, known for its Sicilian seaside street food, per The US Sun.
They have not announced a closing date but are expected to close between late May and mid-June, according to Bring Me The News.
“As we prepare to close our doors at ie and un dito, we’d like to extend a heartfelt invitation for you to join us for our final months of service,” an email to customers from Carrara $ Co. read.
“Gather with us at the table and let us reminisce over the incredible memories we’ve created together and cherish the moments shared over the past nine years.”
Italian Eatery has been a popular spot since its opening in 2016 and is known for its full-service drinks and dining near Lake Nokomis.
Un dito is a 400-square-foot space that specializes in sips and snacks or afternoon gatherings like you would see in Italy, according to its website.
The restaurant’s “Last Supper” reservations will be released every week and shared in weekly newsletters, according to its website.
“As always, we will continue to reserve walk-in tables at both ie + un dito for our beloved neighborhood,” the announcement read, according to the outlet.
Carrara & Co. also owns due, a focacceria and Italian market in St. Paul, Minnesota that the company calls “Italian Eatery’s spawn, aka quirky little brother,” according to its website.
Despite the Minneapolis closures, due will remain open.
“I’m pleased to inform you that all other Carrara & Co operations remain unaffected, including Due Focacceria, and we are even expanding our services,” according to a statement, reported by NBC affiliate KARE.
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Also Read: A Massive Grocery Brand Now Files For Chapter 11 Bankruptcy
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