A historic US company now files an unexpected bankruptcy, leading the business to liquidate and lay off all of its employees.
Trucking company Arnold Transportation Services laid off all of its employees and shut down operations five days before filing for Chapter 7 liquidation on April 30, reports TheStreet.
The Grand Prairie, Texas-based logistics company had been purchased in February 2022 by Mississauga, Ontario-based Pride Group Holdings.
On March 27, 2024, Pride Group filed for protection under the Companies’ Creditors Arrangement Act in the Ontario Superior Court of Justice in Canada blaming effects from the Covid-19 pandemic for the company’s financial crisis.
Pride subsequently filed for Chapter 15 bankruptcy protection on April 1 in the U.S. Bankruptcy Court for the District of Delaware seeking recognition of a foreign proceeding to protect its assets in the U.S. from creditors.
Arnold Transportation, however, is not a debtor in the Chapter 15 filing.
Pride said in a declaration by its foreign representative that as the pandemic subsided, demand for trucking services decreased, diesel fuel prices soared, interest rates rose, and an oversupply of trucks and truck drivers in North America negatively impacted the trucking industry.
The company shut down business lines, stopped taking new delivery orders and terminated its group medical and prescription drug plan to reduce expenses in April. It also required intercompany advances from Pride to maintain payments for fuel and employee wages and benefits.
The foreign representative pursued a quick asset sale for Arnold, but no bidder emerged with a viable offer that could be completed quickly. With hopes for a sale fading, the company opted to file for Chapter 7 liquidation.
Arnold generated about $170 million in revenue in 2023, according to data from Zippia, but Pride said the company had not been profitable, FreightWaves reported. The debtor listed up to $10 million in assets and $10 million to $50 million in liabilities in its petition.
The debtor reportedly filed a Worker Adjustment and Retraining Notification Act notice on May 1, almost a week after closing down its operations and laid off 157 employees, FreightWaves said.
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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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