WACO, Texas – Central Freight Inc. is putting on the brakes after nearly 100 years in business, leaving over 2,000 employees wondering what happens next.
The company said in a statement the decision was hard, and they are unable to fund operations.
“We make this announcement with a heavy heart and extreme regret that the Company cannot continue after nearly 100 years in operation. We would like to thank our outstanding workforce for persevering and for professionally completing the wind-down while supporting each other. Additionally, we thank our customers, vendors, equipment providers, and other stakeholders for their loyalty and support.“
Central Freight Lines Inc. started in Waco in 1925, expanding to many states during the last century.
The company has won countless awards including Freightwaves Haul of Fame and Global Tranz carrier of the year.
MMRC trucking owner Michael Rinehart says hearing the company is closing is shocking.
“The trucking industry in general right now is very very strong,” Rhinehart said. “No problems trying to find loads, trying to find freight, and the rates are actually up quite a bit from the previous years.”
Many people took to social media sharing mixed emotions towards the announcement. Some were thanking the company and others confused about them closing during this time.
“As far as the reason for this happening. I can’t figure this out for any reason why a trucking company right now would be going out of business,” Rhinehart said. “My second question is why do you have to do it right before the holidays.”
The company pinned a message to their website saying “As of Monday December 13, we will no longer be picking up freight. We will continue to deliver the freight we have in our system.”
“The Company explored all available options to keep operations going. However, operating losses sapped all remaining sources of liquidity, and the Company`s liabilities far exceed its assets, all of which are subject to liens in favor of multiple creditors. Despite diligent efforts, the Company was unable to gain commitments to fund ongoing operations, find a buyer of the entire business, or fund a Chapter 11 reorganization. Given its limited remaining resources, the Company concluded that the best alternative was a safe and orderly wind-down. As we complete the wind-down process, our primary goal will be to offer the smoothest possible transition for all stakeholders while maximizing the amount available to apply toward the Company`s obligations.”
Although this company with over 2,000 workers is closing its doors, many trucking company’s are welcoming these workers
National Carriers Inc shared a message to their Facebook page extending their condolences and offering immediate employment to displaced workers.
“We are a huge community out here and we look out for each other. Anybody that’s looking for work right now, just talk to another fellow driver most likely their company is hiring,” Rhinehart said.
The company is in negotiations to sell equipment and says their goal is to offer the smoothest transition.