Another trucking company now files an unexpected bankruptcy, with plans to restructure its businesses.
Pride Group, a family-owned trucking company, has its headquarters in Mississauga, Ontario, near Toronto, but operates in the U.S. as well.
“We are a privately held, diversified group whose subsidiaries and affiliates operate in a variety of industries including transportation, logistics, heavy-duty equipment dealerships, equipment leasing & rentals, real-estate holdings, and full-service fleet management.
PGE operates and manages businesses in both Canada and the United States, employing over 500 people,” the company shared on its website.
The company has struggled in recent months and has taken steps to restructure its business, reports TheStreet.
This has included a bankruptcy filing, which the company explained on its website.
“Pride Group Holdings Inc. and other applicant companies (the “Applicants”) sought and obtained protection under the Companies’ Creditors Arrangement Act (the “CCAA”) pursuant to an Initial Order of the Ontario Superior Court of Justice (Commercial List) (the “Initial Order”).
Other companies affiliated with the Applicants (the “Additional Stay Parties”, and together with Applicants, the “Pride Group”), although not applicants themselves, were granted a stay of proceedings as part of these proceedings under the CCAA (the “CCAA Proceedings”) for the duration of 10-days, subject to extension thereafter as the Court deems appropriate.”
That’s the Canadian version of bankruptcy, but there has also been a U.S. filing.
“Certain companies in the Pride Group will file cases under Chapter 15 of Title 11 of the United States Code in the United States Bankruptcy Court for the District of Delaware (the “Chapter 15 Cases”) seeking recognition of the CCAA Proceedings within the territorial jurisdiction of the United States and other related relief,” the company shared.
Pride Group has a complicated array of holdings that includes 16 transport companies, 45 real estate holding companies, and 10 other holding companies founded and controlled by Sulakhan “Sam” Johal, Truck News reported.
The company has roughly $2 billion in debt, and the company blames the current freight market for its troubles.
“Spot freight prices, diesel prices, and interest rate trends were all initially favorable for the trucking industry following the onset of the Covid-19 pandemic.
They have all deteriorated significantly since that time.
The bottom-line result is made significantly worse by virtue of the increased trucking and logistics supply that was brought to market during the upturn, which is currently sitting as unused excess capacity in the market,” according to a court filing.
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Also Read: A Giant Company Now Announces Unexpected Layoffs in Maryland
Other Economy News Today
A beloved brewery now declares an unexpected bankruptcy after reporting that it had less than $7.5 million in debt.
District 9 which operates 3 microbreweries and 1 production brewery, and operates a distribution center, has now filed for Chapter 11 bankruptcy.
The company did not provide a financing or turnaround plan as part of its filing.
District 9 Brewing did say that it expected funds to be available for unsecured creditors.
The company said it owed money to between 50 and 99 creditors while its assets are less than $500,000.
District 9 appears to have closed its taprooms, perhaps temporarily and its website shows no upcoming events.
The online store linked to its website, which appears to be operated by an unrelated third party, still enables purchase of D9 beers.
District 9 Brewing made supporting its community a core pillar of its business philosophy, reports TheStreet.
“Our mission at D9 is to inspire and support the community through the creation of exciting and originally crafted ales,” the company wrote.
“As explorers of all beer styles, we offer a wide variety of selections for exceptional craft drinking experiences.
We invest in the scientific exploration of the natural world to produce the highest quality, and unquestionably original, crafted ales.”
The company also supported local charities with some of its events.
“D9 greatly values coming alongside our local nonprofit community partners in supporting efforts to drive meaningful change for our neighbors,” the brewery added.
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Also Read: A Massive Discount Retailer Is Now Closing 600 Stores
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