On 7/31/23 6:09 PM, ScottW wrote:
On Monday, July 31, 2023 at 2:21:30 PM UTC-7, mINE109 wrote:
On 7/31/23 11:06 AM, ScottW wrote:
https://www.msn.com/en-us/money/companies/trucking-giant-yellow-shuts-down-the-99-year-old-company-which-has-almost-30-000-staff-and-12-000-big-rigs-ceases-operations-immediately/ar-AA1eySAM?ocid=msedgntp&cvid=78f393b46a8f479486733bd9a4cd58da&ei=55
Ceased operations due to intransigent Unions and declining freight demand. >> https://www.washingtonpost.com/business/2023/07/31/yellow-trucking-shutdown-bankruptcy/
"While the turbulence of recent months accelerated company losses,
Yellow’s struggles can be traced back some 15 years, Atkins said —
beginning with a series of acquisitions that the company failed to
smoothly integrate into its business. That led to persistent
inefficiencies, financial struggles and tensions with the union over
wages and benefits."
There's always more to it.
Dig deeper. You'll likely to find the gov't is going to be left with a big fat unpaid loan
they pushed on Yellow during Covid.
COVID happened fifteen years ago? Biden forced them to make a series of unsuccessful acquisitions that incurred debt in hope of expansion?
https://www.freightwaves.com/news/yellows-demise-2-decades-in-the-making
That's like saying the lifeguard "pushed" a life preserver on a drowning swimmer.
https://coc.senate.gov/report/the-yellow-report-final/
"...a representative of Yellow wrote an email to the Treasury indicating “bottom line, [Yellow] is in need of a loan from Treasury or they won’t make it through the summer.” On June 2, 2020, a Moody’s analysis noted Yellow’s liquidity was “weak” prior to the Treasury loan and Yellow’s credit rating was Caa1, which Moody’s noted is reserved for debt “judged
to be of poor standing and subject to very high credit risk.” Yellow’s
very high credit risk was not a new development but instead a product of decades of mismanagement by Yellow, evidenced by Yellow’s financial restructurings in both 2009 and 2011. In 2019, prior to the COVID
pandemic, Yellow was engaged in yet another corporate restructuring in
an attempt to turn around its struggling fortunes."
A company that spends $570,000 on lobbying to get loan money isn't the
victim.
The government can take comfort in having helped with the pension
obligations.
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