1000 employees out of work as flatbed operator files for bankruptcy

Core Insights - Montgomery Transport LLC, a trucking company based in Birmingham, Alabama, has filed for Chapter 7 bankruptcy, leading to an immediate cessation of operations and leaving approximately 1,000 employees without jobs [1][2][3] Group 1: Bankruptcy Filing - The company has officially filed for Chapter 7 bankruptcy, indicating a complete liquidation rather than a reorganization, which is different from Chapter 11 that allows for restructuring while continuing operations [2] - The announcement of the bankruptcy was sudden, with employees receiving little to no advance warning, resulting in an immediate operational halt across the company's network [2] Group 2: Impact on Employees - The bankruptcy has resulted in around 1,000 employees losing their jobs, including 600 truck drivers who were actively working on deliveries at the time of the announcement [3] - Drivers close to home have been instructed to return and await further instructions, while those completing deliveries have been told to finish their current loads but not to accept new assignments [3] Group 3: Background of Financial Troubles - Montgomery Transport's financial issues began earlier in the year, with the principal owner, One Equity Partners, deciding to exit the trucking industry and sell the company in June 2025 [4] - P and S Transportation began due diligence to purchase Montgomery Transport in July 2025, with a planned closing date of September 30 [4] Group 4: Sale Process and Legal Issues - A lawsuit and restraining order filed by Rollins Montgomery on September 26 halted the sale process, which led the company to attempt a sale through Chapter 11 bankruptcy proceedings [5] - By October 8, the situation worsened as creditors failed to reach consensus terms, forcing the company to convert to Chapter 7 bankruptcy and cease operations entirely [5]