(Reuters) – U.S. trucking firm Yellow is preparing to file for bankruptcy, the Wall Street Journal reported on Wednesday, as customers abandon the company amid a cash crunch and union negotiations.
The company could seek bankruptcy court protection as soon as this week, though no decision has been made, the report said, citing people familiar with the matter.
“As previously stated, in keeping with the fiduciary responsibility of the company’s executives, the company continues to prepare for a range of contingencies,” a Yellow official told Reuters on Wednesday.
On Sunday, the third-biggest U.S. trucking company averted a threatened strike by 22,000 Teamsters-represented workers after compensating more than $50 million it owed in worker benefits and pension accruals.
Its customers include large retailers like Walmart and Home Depot, manufacturers and Uber Freight, some of which have paused cargo shipments to the company for fear those goods could be lost or stranded if the carrier goes bankrupt.
In 2020, the Donald Trump led government rescued the company with a $700 million pandemic relief loan in exchange for a 30% stake.
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(Reporting by Urvi Dugar and Mrinmay Dey in Bengaluru; Editing by Arun Koyyur)