Aug. 7, 2023

YRC Freight, now Yellow Corp., has filed for bankruptcy, which includes its Sioux Falls operation, and is going out of business.

The nearly century-old trucking company sought Chapter 11 bankruptcy relief today.

“It is with profound disappointment that Yellow announces that it is closing after nearly 100 years in business,” CEO Darren Hawkins said in a statement.

“Today, it is not common for someone to work at one company for 20, 30 or even 40 years, yet many at Yellow did. For generations, Yellow provided hundreds of thousands of Americans with solid, good-paying jobs and fulfilling careers.”

The Sioux Falls facilities at 3401 N. First Ave. and 2801 S. Kiwanis Ave. told approximately 150 workers in late July that the operation was shutting down, according to a report from KELO-AM. The company halted regular operations about a week ago.

Yellow has about 30,000 employees, both union and nonunion.

In its bankruptcy filing, the company blamed the International Brotherhood of Teamsters for failing to approve a new business plan it said would have made the company more competitive while raising pay.

“While IBT leaders may believe they won a battle against Yellow, it’s our employees and their families who have lost,” Hawkins said.

“We tried everything to work with IBT leadership and did all we could to save employees’ jobs. We are crushed by today’s announcement, yet we are grateful to our tens of thousands of employees who took care of our customers until the end. Our employees are professionals who, despite heavy hearts, worked diligently to clear the docks, deliver remaining freight and close our terminal doors one last time. It is with this same professionalism that we intend to wind down our business, maximize recoveries for creditors and pay back the CARES Act loan in full.”

In a statement, the union called the situation unfortunate but not surprising.

“Yellow has historically proven that it could not manage itself despite billions of dollars in worker concessions and hundreds of millions in bailout funding from the federal government,” Teamsters general president Sean O’Brien said.

“This is a sad day for workers and the American freight industry.”

Yellow has partnered with the American Trucking Associations to launch its first searchable job database, specifically for Yellow employees. The initiative “intends to streamline job placement while giving ATA member companies the ability to connect with thousands of skilled freight and operations professionals, mechanics, logisticians and more,” the company said.