Major U.S. trucking company with operations in Waterloo Region files for bankruptcy
KITCHENER -- A major U.S. trucking company with operations in Waterloo Region has filed for bankruptcy.
Celadon Group Inc. announced Monday morning that it had "filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware" along with its 25 affiliates.
A business with locations in Ayr and Wroxeter, Hyndman Transport, is a Celadon company.
CEO Paul Svindland says that about 400 Ontario employees will be impacted by the bankruptcy.
All of Celadon's business was stopped the day of the announcement.
According to a news release, Celadon will use the proceedings to wind down its operations around the world.
"We have diligently explored all possible options to restructure Celadon and keep business operations ongoing, however, a number of legacy and market headwinds made this impossible to achieve," says Svindland in the release.
The Associated Press reported on Monday that the bankruptcy comes after two former company officials had been charged in a fraud scheme, something Svindland seems to acknowledge in the release.
"Celadon has faced significant costs associated with a multi-year investigation into the actions of former management, including the restatement of financial statements," he's quoted as saying.
The company was first founded in 1985 and grew to become "the largest provider of international truckload services on the continent," the news release says.
Almost 4,000 people worked for Celadon.