A massive trucking company is now liquidating through bankruptcy after failing to sell itself throughout its painful process.
The bankruptcy case of Pride Group Holdings, a major shipping company, has been dragging on for months.
The company filed for protection under Canada’s Companies’ Creditors Arrangement Act in March 2024, citing the COVID-19 pandemic as the primary cause of their financial troubles.
The case is currently being heard in the Ontario Superior Court of Justice.
Following their Canadian filing, Pride Group Holdings, based in Mississauga, Ontario, sought Chapter 15 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware on April 1st.
This move aimed to safeguard their U.S. assets from creditors and gain recognition for their ongoing Canadian proceedings.
In a statement, Pride attributed their financial struggles to a combination of factors following the pandemic.
They cited a decline in trucking service demand, skyrocketing diesel fuel prices, rising interest rates, and an overabundance of trucks and drivers in North America, all of which negatively impacted the trucking industry.
When it filed bankruptcy, Pride Group had a fleet of about 20,000 tractor-trailers owned, leased, contracted for service, serviced or securitized and operates 50 owned and leased locations across Canada and the U.S., FreightWaves reported.
In CCAA monitor Ernst & Young’s Twelfth Monitor Report, it stated as of Aug. 6 that Pride Group’s fleet consisted of 1,459 trucks and trailers, 1,383 owned by the debtor.
At that time, it employed about 110 office staff and 95 drivers.
It also had 120 driver subcontractors through agencies, about 140 owner-operator drivers and 75 drivers through four partner carriers.
Pride’s stakeholders have reportedly rejected a sale offer, and the debtor on August 7 filed a CCAA motion seeking an additional $50 million in DIP financing to finance an orderly wind-down of its operations, according to court papers.
However, in an Aug. 15 statement, Pride Group claimed that it has sufficient liquidity to operate while it continues to seek a going-concern sale of the company.
It said, as of the date of the statement, the company was not being wound down.
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Also Read: Another Mall Clothing Retailer Now At High Risk of Bankruptcy
Other Economy News Today
A massive rental company with 34k locations now shuts down its operations after filing for bankruptcy and 22 years in business.
Users of movie rental company Redbox were left saddened after it was announced that it would be shutting down operations.
The announcement comes after the rental company’s parent company, Chicken Soup for the Soul Entertainment, filed for Chapter 11 bankruptcy.
According to court documents obtained by the Washington Post, the Connecticut-based company claimed to be one billion dollars in debt.
As a result, Redbox, which was a staple of many grocery stores including Walgreens, and CVS will be shuttered.
Many fans took to social media to express how upset they were with the loss.
“I knew it was coming, sadly,” UltraVada wrote in a post on X, formerly Twitter.
“It was inevitable,” a second person mourned.
“I knew this would happen when I heard they filed for Bankruptcy but its still sad to hear. I have a lot of fun memories of Redbox,” a third person lamented.
“I still don’t think this will be or ever be the end of physical media as we do still get remasters of some movies in 4k/Bluray.”
One person revealed that they had forgotten the rental service had existed.
Some users were not surprised by the announcement.
“Not surprised since nobody really rents videos anymore with the rise of streaming and what not,” one user admitted.
“Also kinda remember getting into a feud with them on here.”
One user also pointed out that the last remaining Blockbuster, located in Bend, Oregon, managed to outlive Redbox.
Redbox was acquired by Chicken Soup for the Soul Entertainment (CSSE) in 2022 and became one of the company’s flagship video-on-demand streaming services.
At its peak, CSSE operated more than 20,000 DVD rental kiosks across the country.
The company’s filing means that the company’s more than 1,000 employees will be laid off, per The Wall Street Journal.
It was also reported by Deadline that many employees at CSSE hadn’t received their paychecks and had medical benefits cut in late June.
Also Read: This Massive Mall Retailer Is Now Closing In California
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