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Bulk bankruptcy

Sep 27, 2023 at 05:14 PM CST
+ 2
Any thoughts on ED Buchta Trucking. A bulk company filing bankruptcy while freight waves sayin trucks for hire is on the rise. Doesn't sound promising
Replied on Thu, Sep 28, 2023 at 10:06 AM CST
After reading about this. Buchta was bought out in 2008 by the Wright investment group. Then it was bought the beginning of the year by the Capolino family under transport acquisitions llc. I'm sure they had started the process before the rates tanked thinking they were going to be millionaires. 😆 🤣 😂 and now the rates are the lowest ever cost is at the highest ever so. That makes for a bunch of bankrupting companies. 2009 will be looked back on as easy street before we are done with this. Shippers showing records profits while more and more companies go bankrupt
Replied on Thu, Sep 28, 2023 at 10:06 AM CST
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This is where the race to the bottom always leads.
Replied on Thu, Sep 28, 2023 at 10:08 AM CST

This was actually a pretty interesting read. The company is using backruptcy as a means to restructure their debts and give them more capital to upgrade their equipment. They're aiming to increase their staffing by 20% in the coming months. No layoffs, no down time, business as usual for them.

It's a bold strategy, Cotton. Let's see if it pays off for 'em!

Replied on Mon, Oct 02, 2023 at 07:49 AM CST
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They are very local to us, maybe 20 miles away with a terminal maybe 7 miles away. We haven't worked with them in about 7-8 years, and back when we did it was very minimual. Rates and bids and has always been the bottom of the barrel and try to make it up on volume in my opinion.

That said - my guess as to at least a portion of how they got there is the coal business. Coal was there big business, there has been several coal mines in our local area close the last few years, some of which filed bankruptcy. If they lost a few million in coal mine bankruptcies I could see how that would be hard to recover from.

Everyone has read how they are going to be bigger and better, don't know anyone that believes it. On one hand they are a big company that a lot of people love to drag down, on the other hand there is a lot of jobs at stake, I hate to see it happen. Even in a big company there are a lot of good people that I hate to see without a job.