A California trucking company now files an unexpected bankruptcy that led to liquidation after it lost its authority to operate.
Flex Intermodal, a trucking company based in California, has filed for Chapter 7 bankruptcy liquidation on September 13, 2023, after ceasing operations in August due to the loss of its operating authorization and facing multiple lawsuit judgments.
The Fremont-based shipping company, which once operated out of the Port of Oakland, reported assets valued at up to $100,000 against liabilities ranging from $1 million to $10 million in its bankruptcy petition submitted to the U.S. Bankruptcy Court for the Northern District of California.
The Federal Motor Carrier Safety Administration (FMCSA) revoked Flex Intermodal’s operating authority in August 2023, following the cancellation of its insurance coverage for bodily injury and property damage.
The company, which had received its operating authority from the FMCSA in September 2018, had a fleet of 25 trucks and employed 30 drivers at the time of its closure.
Flex Intermodal is facing several legal challenges, including four judgments against it from Equify Intermodal and Flexi Van Leasing in Alameda County, as well as Balboa Capital and Equify Financial in Orange County.
Additionally, the company is a defendant in a lawsuit filed by Ally Bank, which seeks to repossess a 2019 Freight Cascadia vehicle after Flex allegedly defaulted on a loan totaling approximately $82,886, along with associated finance charges and late fees.
Ally Bank has estimated the trade-in value of the vehicle at around $44,250 and is seeking not only possession but also damages for rental value and depreciation since the default.
As Flex Intermodal navigates its Chapter 7 bankruptcy, all pending litigation against the company is automatically stayed under federal bankruptcy rules.
Its largest unsecured creditors include the U.S. Small Business Administration, owed $2.8 million, Hemer Rousso & Heald, owed $213,000, and Balboa Capital, owed $210,000.
Although Flex Intermodal has not operated in 2024, it reported revenues of $1.2 million in 2023 and $1.9 million in 2022, illustrating its decline in financial stability leading up to the bankruptcy filing.
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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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