Freight Distress Report: Carrier, logistics closures erase over 245 jobs

It was not immediately clear whether the Piscataway facility will close permanently after the layoffs.

More trucking bankruptcies emerge

Several additional trucking and logistics companies also entered bankruptcy proceedings over the past two weeks, underscoring the breadth of financial pressure facing smaller freight operators.

Jackson and Son Hauling LLC, an FMCSA-registered motor carrier based in Ruther Glen, Virginia, filed for Chapter 7 bankruptcy protection on July 13 in the U.S. Bankruptcy Court for the Eastern District of Virginia. According to the filing, the carrier operated two trucks and employed two drivers at the time of the petition.

Victory Freight Corp., a San Bernardino, California-based trucking company, filed for Chapter 7 bankruptcy on July 2 in the Central District of California. Court records indicate the carrier cited a multimillion-dollar legal claim as one of its primary liabilities as it moves to liquidate its assets.

IPS Express Logistics Inc., a transportation and supply chain company based in San Leandro, California, also filed for Chapter 7 bankruptcy protection in the U.S. Bankruptcy Court for the Central District of California.

Meanwhile, Talon Logistics Inc., a Woodland Hills, California-based drayage and intermodal carrier, filed for Chapter 11 protection on June 29. Bankruptcy records indicate the company operates approximately 40 to 50 power units and has invested heavily in zero-emission equipment, including electric and hydrogen-powered trucks serving the Los Angeles market.

The additional filings suggest that financial challenges continue to affect carriers across multiple segments of the freight economy, from small owner-operated trucking companies to regional intermodal fleets and specialized logistics providers.

Distribution facilities slated for closure

Frito-Lay will discontinue warehouse operations at its distribution center in Raleigh, North Carolina, on Sept. 6, resulting in the layoffs of approximately 68 employees.

The facility is located at 8924 Midway West Road. Frito-Lay said affected workers will receive information about other openings and that the company will attempt to place some employees at nearby locations.

D&H Distributing Co. is also closing a logistics warehouse in Bolingbrook, Illinois, and laying off all 68 warehouse and operations employees at the location, according to a state WARN notice.

D&H distributes technology products and provides supply chain services to retailers, resellers and other business customers.

DHL Supply Chain will eliminate another 33 positions at a facility in Fullerton, California. The layoffs at 701A Sally Place are scheduled to take effect Sept. 3.

The notices did not provide additional details about what prompted D&H’s facility closure or DHL Supply Chain’s decision to discontinue operations at the Fullerton location.

Logistics and fuel companies seek bankruptcy protection

Los Dorados Cargo Inc., an international freight forwarder and courier serving Latin American markets, filed for Chapter 11 protection July 9 in the U.S. Bankruptcy Court for the Eastern District of New York.

The Elmhurst, New York-based company listed assets of no more than $50,000 and liabilities ranging from $1 million to $10 million. It reported fewer than 50 creditors.

Los Dorados Cargo maintains shipping routes to more than 12 Latin American countries, including Panama, Peru and Venezuela, and operates a courier location in Jackson Heights, New York.

Fuel Group Trading LLC filed for Chapter 11 protection July 8 in the Western District of Texas. The Round Rock-based wholesaler of gasoline, diesel and other petroleum products listed assets of $500,000 to $1 million and liabilities of $100,000 to $500,000.

The company has maintained operations in Texas and Puerto Rico and previously engaged EF Hutton as a financial adviser for strategic operations.

Trailer businesses enter Chapter 11

Two companies connected to the cargo trailer market filed for bankruptcy protection July 6.

Freedom Trailers LLC, an enclosed cargo trailer manufacturer based in Tifton, Georgia, filed in the Middle District of Georgia with assets and liabilities each estimated at between $1 million and $10 million.

The company operates a manufacturing facility in Willacoochee, Georgia, and reported a workforce of between 100 and 249 employees. Freedom Trailers also operates as a motor carrier, with 20 registered drivers and two power units as of June.

The company previously disclosed that the discovery of an alleged internal theft involving a former employee in 2024 caused a significant financial disruption.

Stryker Dealership Group LLC, a utility and cargo trailer wholesaler based in Piedmont, Alabama, filed for Chapter 11 protection in the Northern District of Alabama.

Stryker reported assets of $100,000 to $500,000 against liabilities ranging from $10 million to $50 million. The company reportedly operated six facilities and employed between 30 and 60 people before the filing.

The disparity between the company’s reported assets and liabilities suggests it faces a particularly steep restructuring challenge.

Diesel equipment repair company restructures

Diesel Power Technology Inc. filed for Chapter 11 protection July 1 in the Eastern District of California.

The Turlock-based company repairs and maintains diesel engines and industrial power equipment. It listed assets of $100,000 to $500,000 and liabilities of $50,000 to $100,000.

The company continues to operate its Turlock facility while seeking to reorganize its financial obligations. The filing followed a period of customer disputes and legal challenges that reportedly contributed to deteriorating customer ratings and business conditions.

Recent Chapter 11 filings