A US logistics company now makes an unexpected closure after it filed for Chapter 11 bankruptcy in early August.
DRF Logistics, a global e-commerce shipping company based in Austin, Texas, filed for Chapter 11 bankruptcy on August 8 in the Southern District of Texas.
The company is looking to wind down and liquidate after experiencing annual losses since its acquisition by Pitney Bowes in 2017.
Other shipping companies are also facing bankruptcy.
Boateng Logistics, a freight forwarder, shut down after filing for Chapter 7 bankruptcy on February 22, intending to liquidate its assets.
Similarly, Arnold Transportation Services, a trucking company with 92 years of history, laid off its entire workforce and ceased operations just days before filing for Chapter 7 liquidation on April 30.
On June 21, U.S. Logistics Solutions, owned by private equity firm Ten Oaks Group, filed for Chapter 7 bankruptcy in Houston.
The company has also shut down operations and laid off employees while preparing to liquidate, per TheStreet.
In another development, Midwest Transport, a trucking and logistics company based in Robinson, Illinois, has unexpectedly ceased its operations without filing for bankruptcy.
The firm, which has contracts with the U.S. Postal Service, informed its regional managers about the shutdown on September 5.
With over 480 drivers among approximately 650 employees, Midwest Transport has key terminals in several states and has been recognized with the Eagle Spirit Award, the highest honor for mail transport contractors from the Postal Service.
As of September 6, the company had not issued a public statement regarding its operations.
Former drivers expressed surprise at the abrupt shutdown, especially after recent communications urging them to maintain certification of their logbooks and improve on-time performance.
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Also Read: A Struggling Gas Station Chain Now Files An Unexpected 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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