Central Freight Lines Announces Plan to Wind Down Operations
WACO, Texas, December 13, 2021 (Newswire.com) - Central Freight Lines, Inc., headquartered in Waco, Texas, announced that it is winding down its operations beginning today. Central Freight has ceased picking up new shipments effective Monday, Dec. 13, 2021, and expects to deliver substantially all freight in its system by December 20. Central Freight is in discussions with key customers and vendors and expects sufficient liquidity to complete deliveries over the next week in an orderly manner.
Central Freight released the following statement: "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."
"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," said Bruce Kalem, Central Freight's President.
"Central Freight is in negotiations to sell a substantial portion of its equipment. Additionally, Central Freight is coordinating with other regional LTL carriers to afford its employees opportunities to apply for other LTL jobs in their area. Discussions are ongoing and no purchase of assets or offer of employment is guaranteed," Kalem said.
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Bruce Kalem
President
Source: Central Freight Lines, Inc.