![]() ![]() The closing is bad news not only for its employees and its customers, who generally used Yellow because it offered some of the cheapest rates in the trucking sector, but also for US taxpayers. ![]() The Teamsters said Monday the company is filing for bankruptcy. There were reports last week that a bankruptcy filing would come by July 31, although the company said last week only that it continued to be in talks with the Teamsters and that it was considering all of its options. Both were far more profitable in recent years than Yellow, which posted only a narrow operating profit in 20 and a $9.3 million operating loss in the first quarter. There are two other national competitors in Yellow’s segment of the trucking market which are also unionized, ABF Freight and TForce. “Now their debt service is just enormous,” he said, pointing to $1.5 billion in debt on its books. He said the company began taking on significant amount of debt 20 years ago in order to acquire other trucking companies. “The Teamsters had made a series of painful concessions that brought them close to wage parity with nonunion carriers,” said Tom Nightingale, CEO of AFS Logistics, a third-party logistics firm that places about $11 billion worth of freight annually with different trucking companies on behalf of shippers. Experts in the field said it was primarily an unaffordable amount of debt, more than the cost of the union contract, that did in Yellow. While the company is based in Nashville, Tennessee, it is a national company with terminals and employees spread between more than 300 terminals nationwide. This is a sad day for workers and the American freight industry,” said Teamsters President Sean O’Brien in a statement.Ĭompany officials did not respond to numerous requests for comment Sunday and Monday. 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. “Today’s news is unfortunate but not surprising. The union said early Monday that it had been notified of the shutdown. While the union agreed not to go on strike against Yellow, it could not reach an agreement on a new contract with the trucking company, according to a memo sent to local unions Thursday by the Teamsters’ negotiating committee. The union granted the company an extra month to make the required payments.īut by midweek last week, the company had stopped picking up freight from its customers and was making deliveries only of freight already in its system, according to both the union and Satish Jindel, a trucking industry consultant. Just a week ago the union canceled a threatened strike that had been prompted by the company failing to contribute to its pension and health insurance plans. The unionized company has been in a battle with the Teamsters union, which represents about 22,000 drivers and dock workers at the company. Both Ford and Open Road boss Tom Ortenberg left the company to form rival operations: Ford’s AGC Studios and Ortenberg’s Briarcliff EntertainmentĪt last year’s European Film Market in Berlin, Rob Friedman, then CEO of Global Road’s entertainment division, told a packed crowd of international distributors that the company had a $1 billion war chest to invest in film productions over the next three years.Yellow Corp., a 99-year-old trucking company that was once a dominant player in its field, halted operations Sunday and will lay off all 30,000 of its workers. ![]() Tang’s Tang Media Partners made its big Hollywood play three years ago, first by acquiring Stuart Ford’s foreign sales, financing and production outfit IM Global and then buying Open Road and merging the two to form Global Road. ![]() “We’re going to patiently continue to acquire content via libraries.” Speaking to The Hollywood Reporter, Raven principal and portfolio manager James Masciello said the company would be looking to exploit the Open Road library both by licensing the finished films and developing the underlying IP for future projects. and Tupac Shakur - has so far been released in Italy, where it grossed a respectable $1.6 million. The film - in which Depp and Forest Whitaker play a police officer and a reporter, respectively, investigating the murders of rappers Notorious B.I.G. Open Road pulled the movie from domestic release last year just a month before it was set to hit theaters. Raven recently teamed with AMBI Media Group on a similar purchase of Exclusive Media Group’s library of 400 titles, including Donnie Darko, Sliding Doors and Memento, among others.īut Raven did not acquire any of Open Road’s unreleased titles, so the fate of the Johnny Depp thriller City of Lies remains uncertain. ![]()
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