STG Logistics files for Chapter 11 bankruptcy

Core Insights - STG Logistics, based in Dublin, Ohio, has expanded rapidly through acquisitions, including Best Dedicated Solutions in 2023 and XPO Logistics' intermodal segment for $710 million in 2022 [3][8] - The company is currently facing a severe freight recession, which has impacted many carriers financially, leading to shutdowns and bankruptcies in the trucking industry [3][4] - STG Logistics has initiated a Chapter 11 bankruptcy process to restructure its debt and operations, aiming to strengthen its balance sheet and reduce its debt by approximately 91% [4][8] Financial Restructuring - The company has over $1 billion in both assets and liabilities, and the restructuring will provide $150 million in new debtor-in-possession financing to support operations during the bankruptcy [5][8] - STG Logistics plans to continue its operations during the bankruptcy proceedings, ensuring employee wages, benefits, and vendor payments are maintained [5][6] Management Perspective - CEO Geoff Anderman expressed confidence that the Chapter 11 process will position the company for long-term growth and success, emphasizing that business operations will remain unaffected during the restructuring [6][8]