Freight distress spreads as bankruptcies, layoffs top 600 jobs
Bankruptcy filings and WARN notices show freight companies are still battling tight margins despite signs of market recovery The post Freight distress spreads as bankruptcies, layoffs top 600 jobs appeared first on FreightWaves.
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Several trucking and logistics companies sought bankruptcy protection over the past week, as several transportation and logistics companies also announced facility closures and layoffs across the U. S. The bankruptcies and layoffs reflect continuing financial challenges facing transportation providers despite significant improvements to the freight market.
The latest filings include a mix of Chapter 11 reorganizations and Chapter 7 liquidations involving trucking carriers, freight brokers, logistics consultants and transportation service providers operating in Illinois, Tennessee, Maryland, North Carolina and Michigan. Wisconsin-based Sparhawk Trucking Inc. and Sparhawk Truck and Trailer Inc.
recently issued a notice warning employees of potential layoffs or a possible closure as the companies seek a buyer through bankruptcy proceedings. According to FMCSA records, Sparhawk Trucking operates 178 trucks and employs 146 drivers.
Company officials said no final decisions have been made but cautioned employees not to assume the business will remain open. Park Ridge, Illinois-based SP Trans Inc. , a long-haul truckload carrier that filed for protection in the Northern District of Illinois on Tuesday.
The carrier reported assets and liabilities between $500,000 and $1 million and listed between one and 49 creditors. Federal records indicate the company operated with 13 drivers and remained an active motor carrier as recently as May.
Durham, North Carolina-based SB Hauling & Crane Services LLC also filed for Chapter 11 protection on May 29 in the Middle District of North Carolina. The company specializes in construction hauling, crane services and debris removal and operates primarily in the Raleigh-Durham region.
M&L Express LLC, a Hagerstown, Maryland-based long-distance trucking company, filed for Chapter 11 protection on May 29. Federal records show the carrier historically operated a fleet of nine tractors and accumulated more than 1 million annual miles. Bankruptcy roundup chart CompanyLocationBankruptcy TypeFiling DateIndustryAssetsLiabilitiesSP Trans Inc.
Park Ridge, ILChapter 11June 2, 2026General freight trucking$500K-$1M$500K-$1MSB Hauling & Crane Services LLCDurham, NCChapter 11May 29, 2026Specialized trucking/crane services$100K-$500K$100K-$500KM&L Express LLCHagerstown, MDChapter 11May 29, 2026Long-distance trucking$500K-$1M$500K-$1MDZS Enterprise Services LLCWayne, MIChapter 11May 27, 2026Freight brokerage/logistics consulting$500K-$1M$100K-$500KWeiser Onion Produce LLCWeiser, IDChapter 11May 13, 2026Produce packing/warehousing$1M-$10M$1M-$10MBoost Express Logistics Inc.
Elmwood Park, ILChapter 7May 29, 2026Transportation/logisticsUnder $50K$500K-$1MSaturn Trucking Inc. Addison, ILChapter 7May 31, 2026TruckingUnder $50K$100K-$500KS Line LLC (Secure Parking)Knoxville, TNChapter 7May 22, 2026Transportation-related servicesNot disclosedNot disclosedBetter Lanes Transportation Inc.
Memphis, TNChapter 7May 29, 2026TruckingUnder $50KNot disclosed The week also saw several transportation companies move into liquidation proceedings under Chapter 7. Elmwood Park, Illinois-based Boost Express Logistics Inc. filed a Chapter 7 petition in the Northern District of Illinois on May 29.
Court documents list estimated assets of less than $50,000 and liabilities between $500,000 and $1 million. The company reported having between one and 49 creditors. Saturn Trucking Inc. , an Addison, Illinois-based carrier, filed for Chapter 7 liquidation on May 31.
The company reported assets of less than $50,000 and liabilities ranging from $100,000 to $500,000. Court filings indicate no funds are expected to be available for unsecured creditors after administrative expenses are paid.
Knoxville, Tennessee-based S Line LLC, which also operated under the name Secure Parking, filed for Chapter 7 protection in the Western District of Tennessee on May 22. The company listed Knoxville as its principal place of business and Memphis as its mailing address.
While tight margins and higher costs have been affecting small and medium-sized carriers and supply chain-related businesses, freight demand has shown significant improvement during the first quarter of the year. As of Wednesday, tender volumes (STVI. USA) are 43% higher year-over-year compared to the same period in 2025.
As of Wednesday, SONAR’s Outbound Tender Volume Index (STVI. USA) shows tender volumes are 43% higher year-over-year. To learn more about SONAR, click here. Layoffs, warehouse closures add to industry pressures The wave of bankruptcies comes as several transportation and logistics companies have announced facility closures and layoffs across the U. S.
in recent weeks. Meal-kit provider HelloFresh filed a WARN notice in Illinois indicating it will close a major production and fulfillment facility in Burr Ridge, resulting in 254 layoffs. The warehouse supports operations for Factor, the prepared-meal delivery business acquired by HelloFresh. The company did not provide a reason f
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