Celadon Group

Last updated
Celadon Group, Inc.
Company type Public
OTC Pink: CGIP
Industry
FoundedMay 1985;39 years ago (May 1985)
Founders
  • Stephen Russell
  • Leonard Bennett
DefunctDecember 8, 2019;4 years ago (2019-12-08)
FateBankruptcy as a result of fraud
Headquarters
Indianapolis, Indiana
,
United States
Area served
North America
Key people
  • Paul Svindland (CEO)
  • Jon Russell (COO)
  • Thom Albrecht (CFO)
RevenueIncrease2.svg US$1.065 billion (2016)
Decrease2.svgUS$24.844 million (2016)
Total assets Decrease2.svgUS$1.103 billion (2016)
Total equity Increase2.svgUS$381.015 million (2016)
Subsidiaries
  • Celadon Logistics (until 2019)
  • Celadon Trucking Services (until 2019)
  • Hyndman Transport (until 2019)
  • Jaguar Transportation (until 2019)
  • Taylor Express (2015–2020)
Website celadontrucking.com
Footnotes /references
[1]

Celadon Group, Inc. was a truckload shipping company located in Indianapolis, Indiana. It was one of the ten largest truckload carriers in North America and at its peak operated 4,000 trucks and owned an additional 11,000 trucks through Quality Equipment, its leasing division. [2]

Contents

On December 8, 2019, Celadon Group, Inc. and 25 affiliates filed for bankruptcy protection with the intent to fully dissolve the business. Primary business unit Celadon Trucking as well as two subsidiaries, Jaguar Transportation and Hyndman Transport, were shut down in December 2019 [3] while the final subsidiary, Taylor Express, continued operating and was sold in January 2020 to White Willow Holdings. [4]

History

Celadon was founded in 1985 by Stephen Russell and Leonard Bennet. Initially, the company hauled automotive parts to a Mexican Chrysler plant using leased tractors and trailers. The company's name was chosen by Russell as a reference to the Celadon style of Chinese pottery. [2]

The company went public via an IPO in 1994 and was listed on the New York Stock Exchange (NYSE) in 2009. [2]

In 2013 Celadon acquired Lakeland, Florida-based dry van carrier Land Span which had been founded in 1932. Land Span was operated as a wholly-owned subsidiary of Celadon. [5] In 2015, the company acquired Taylor Express, a Hope Mills, North Carolina trucking company founded in 1987 for $43 million. [4]

Fraud

On May 1, 2017 the company announced that COO Eric Meek had resigned after auditor BKD, LLP had determined that the financial statements for the 2016 fiscal year “should not be relied upon.” On May 8, the New York Stock Exchange informed the company that it had failed to meet the exchange's listing standard and the company's stock could be delisted in six months. The noncompliant financials put Celadon into default with its lenders. The company reached a new credit deal with Bank of America on July 3 after agreeing to a host of operating and reporting restrictions. CEO Paul Will announced his retirement on July 13.

The NYSE suspended trading of Celadon's stock in April, 2018 and moved to remove its listing following an internal investigation which would require Celadon to restate financial results back to 2014. [6] Subsequently, it was found that the errors were the result of a series of trades of aging and unused trucks using invoices with deliberately inflated values to intentionally hide significant losses from its investors.[ citation needed ]

In April 2019, Celadon sold its logistics division, Celadon Logistics, to TA Services, a Mansfield, Texas-based division of PS Logistics. Celadon Logistics would run independently for the first 6 months then be folded into TA Logistics. [7] [8]

On April 25, 2019, it was announced that Celadon Group Inc. had agreed to pay total restitution of $42.2 million as a part of its deferred prosecution agreement (DPA) for filing materially false and misleading statements to investors and falsifying books, records and accounts. [9]

On May 9, 2019, the Securities and Exchange Commission (SEC) charged Danny Williams, the former President of former Celadon subsidiary Quality Companies, with accounting fraud which had allowed Celadon to hide "substantial losses" and its true financial state. [10]

On December 5, 2019, the SEC charged former Celadon president and COO William Eric Meek and former CFO Bobby Peavler with accounting fraud. In parallel, the U.S. Attorney's Office for the Southern District of Indiana and the U.S. Department of Justice, Fraud Section announced Williams had pled guilty to related criminal charges. [11]

Bankruptcy

On December 8, 2019, Celadon Group, Inc. and 25 affiliates filed bankruptcy in the United States District Court for the District of Delaware. According to the Federal Motor Carrier Safety Administration in October 2019, the company had 2,771 trucks and 2,553 drivers, and was listed as the 38th largest carrier in North America. [12] Celadon sent messages to the drivers (by ELD messaging) that the company was closing and that everyone that delivered loads and followed directions to return equipment would be compensated. [13]

The company received $165 million from the sale of 49.9% of the company to Luminus Management four months before filing. The trucking company was delisted from the New York Stock Exchange in 2017, for failure to disclose quarterly and annual reports as required by SEC, and along with a poor trucking market as well as the legal issues, that included a $42.2 million fine by the U.S. Department of Justice, made securing more funding impossible. [12]

The court, in a first stage bankruptcy plan, authorized the use of $5.4 million of an $8.2 million loan to pay employees. The closing also includes Hyndman Transport, that ends 82 years of operation, and Jaguar Transportation, [12] leaving Taylor Express in Hope Mills, North Carolina as the only operating business in the group. [3] Taylor was sold to White Willow Holdings of Newfields, New Hampshire in January 2020 for $14.5 million, a substantial discount off the $43 million Celadon paid for Taylor in 2015. [4]

In March 2020, Celadon auctioned off assets from the company headquarters and driver dorms as part of their bankruptcy agreement. [14]

Subsidiaries

Related Research Articles

Caliber System Inc., known until 1996 as Roadway Services Inc., was a transportation holding company based in Akron, Ohio. During its history, Caliber owned a number of logistics companies including Roadway Express, Viking Freight and Roadway Package System (RPS) among others. Roadway Express was spun off in 1995 and Caliber was acquired by FedEx in 1998 with subsidiaries becoming FedEx Ground, FedEx Freight, FedEx Custom Critical and FedEx Global Logistics.

Con-way, Inc. was an American multinational freight transportation and logistics company headquartered in Ann Arbor, Michigan, United States. With annual revenues of $5.5 billion, Con-way was the second largest less-than-truckload transport provider in North America, with additional operations for global contract logistics, managed transportation, truckload and freight brokerage. The company's services were sold through its primary operating companies of Con-way Freight, Con-way Truckload and Menlo Worldwide. These operating units provided less-than-truckload (LTL), full truckload and multimodal freight transportation, as well as logistics, warehousing and supply chain management services. Con-way, Inc. and its subsidiaries operated from more than 500 locations across North America and in 20 countries.

Consolidated Freightways (CF) was an American multinational less-than-truckload (LTL) freight service and logistics company founded on April 1, 1929, in Portland, Oregon, and later relocated to Vancouver, Washington. Affectionately known as "CornFlakes", Consolidated Freightways was also the founder of the Freightliner line of heavy trucks, now owned by Daimler Trucks. At its height, the company possessed over 350 terminals, employing more than 15,000 truck drivers, dock workers, dispatchers and management. Consolidated Freightways was once the nation's number one long-haul trucking company and the 3rd largest-ever US bankruptcy filing, ceasing business in 2002.

<span class="mw-page-title-main">C. H. Robinson</span> Transportation and Logistics Company

C.H. Robinson Worldwide, Inc. is an American transportation company that includes third-party logistics (3PL). The company offers freight transportation, transportation management, brokerage and warehousing. It offers truckload, less than truckload, air freight, intermodal, and ocean transportation.

Estes Express Lines is a privately owned American freight transportation provider based in Richmond, Virginia. Founded in 1931 by W. W. Estes, the company is still owned and operated by the Estes family. Robey W. Estes, Jr., became the company’s president in 1990, then chairman and CEO in 2001. He was succeeded by his son Webb Estes as COO and President in 2023.

<span class="mw-page-title-main">Yellow Corporation</span> American transportation holding company (1929–2023)

Yellow Corporation was an American transportation holding company headquartered in Nashville, Tennessee. Its subsidiaries included national less than truckload (LTL) carrier YRC Freight; regional LTL carriers New Penn, Holland, and Reddaway; and freight brokerage HNRY Logistics. From 2006 to February 2021, Yellow was known as YRC Worldwide.

<span class="mw-page-title-main">Swift Transportation</span> Logistics company

Swift Transportation is a Phoenix, Arizona-based American truckload motor shipping carrier, part of Knight-Swift. With over 23,000 trucks, it is the largest common carrier in the United States. In 2017, Swift merged with Knight Transportation, also of Phoenix.

Roadway Express, Inc. was an American trucking less than truckload (LTL) trucking company. Roadway Express and its holding company, Roadway Corporation, were acquired by logistics holding company Yellow Corporation in 2003, and the parent companies were merged to form Yellow Roadway Corporation, later renamed YRC Worldwide. In 2009, Roadway Express was merged with YRC's other national LTL carrier, Yellow Freight, to form YRC, Inc.

<span class="mw-page-title-main">Knight-Swift</span> American truckload transportation company

Knight-Swift Transportation Holdings Inc. is a publicly traded, American motor carrier holding company based in Phoenix, Arizona. It is the fourth largest trucking company in the United States. The company's primary subsidiaries are truckload carriers Knight Transportation, Swift Transportation, Midnite Express and, since July 2021, less than truckload (LTL) carrier AAA Cooper. In January 2022, the company expanded its LTL footprint with the acquisition of Midwest Motor Express. In July, 2023 Knight-Swift acquired truckload carrier US Xpress.

Trailer Bridge, Inc. is a freight service company headquartered in Jacksonville, Florida. They offer international and domestic shipping with primary international calls to San Juan, Puerto Rico and Puerto Plata, Dominican Republic.

<span class="mw-page-title-main">TForce Freight</span> American trucking company formerly UPS Freight

TForce Freight, a subsidiary of TFI International, is an American less than truckload (LTL) freight carrier based in Richmond, Virginia. The company was founded in 1935 as Overnite Transportation, the name it used until 2006 when it was rebranded UPS Freight by new owner UPS. Its name changed to TForce Freight in 2021 when UPS sold the company to TFI.

New England Motor Freight, Inc. (NEMF) was a unionized less-than-truckload (LTL) and truckload freight carrier, based in Elizabeth, New Jersey. It was one of the largest LTL carriers in the US Northeast when it entered Chapter 11 bankruptcy in 2019 and subsequently shut down all operations in 2020.

<span class="mw-page-title-main">Reddaway (trucking company)</span> American trucking company based in Oregon

USF Reddaway Inc. was an American less than truckload (LTL) trucking company based in Tualatin, Oregon. Reddaway was a subsidiary of transportation and logistics holding company Yellow Corporation and operateed in the Western United States as well as British Columbia, Alaska, and Hawaii.

<span class="mw-page-title-main">Saia</span> American freight company

Saia is an American less than truckload (LTL) trucking company, that originated in Houma, Louisiana in 1924. With original operation occurring in Louisiana and Texas for the first fifty years, expansion came after 1980 when coverage began reaching into more states within the South. Further expansion happened through mergers with other companies, which allowed Saia to provide service for thirty six states. Saia ranks within the top ten of LTL carriers in the United States, with revenues of over $1.8 billion in 2020.

<span class="mw-page-title-main">Contract Freighters, Inc.</span> American truckload carrier commonly known as CFI

Contract Freighters, Inc. (CFI), a subsidiary of Heartland Express, is an American truckload freight carrier headquartered in Joplin, Missouri with operations in the continental US, Canada, and Mexico. Easily recognizable on the highway by their iconic bright red Kenworth trucks. CFI provides point-to-point, full truckload, dry van service, as well as refrigerated transport, and utilizes single drivers as well as two-person driver teams over long-haul routes—most commonly with each trailer containing only one customer's goods.

TFI International Inc. is a Canadian transport and logistics company based in Saint-Laurent, Quebec, a borough of Montreal. It operates primarily in Canada, the United States, and Mexico through 4 business segments: less than truckload (LTL), package and courier, logistics, and truckload. It has Canada's largest LTL business, largest trucking fleet, and in 2021 was ranked 6th in terms of revenue among both LTL and truckload North American carriers. Its trucking fleet consists of over 14,000 company-owned power units, nearly 10,000 owner-operator tractors, nearly 50,000 trailers and over 200 straight trucks.

<span class="mw-page-title-main">XPO, Inc.</span> American transportation company

XPO, Inc. is an American transportation company that conducts less-than-truckload shipping in North America. The company has headquarters in Greenwich, Connecticut, US and 564 locations globally.

<span class="mw-page-title-main">Old Dominion Freight Line</span> American transportation company

Old Dominion Freight Line, Inc. (ODFL) is an American regional, inter-regional and national less than truckload shipping (LTL) company. In addition to its core LTL services, the company offers expedited, logistics and household moving services.

<span class="mw-page-title-main">Central Freight Lines</span> Former American LTL freight trucking company

Central Freight Lines Inc. (CFL) was an American regional less-than-truckload (LTL) company headquartered in Waco, Texas and serving the Southeastern and Southwestern United States. For much of its history it was the largest and longest tenured freight carrier in Texas and in 2021 ranked 21st on Transport Topics top LTL carriers in the US as of 2021 with estimated revenues of US$256 million.

<span class="mw-page-title-main">ArcBest</span> American transportation holding company

ArcBest Corporation is an American holding company for truckload and less-than-truckload (LTL) freight, freight brokerage, household good moving, and transportation management companies. Historically, the company also owned furniture, banking, and other diverse subsidiaries. The company ranked fifteenth among for-hire carriers in the US for 2020 according to industry journal Transport Topics.

References

  1. ↑ Celadon Group, Inc. 2016 Form 10-K Annual Report Archived 2016-11-11 at the Wayback Machine . sec.gov
  2. 1 2 3 Hampstead, John Paul (6 December 2019). "Celadon bankruptcy, biggest in truckload history, expected by midweek (with video)". FreightWaves. Archived from the original on 14 April 2021. Retrieved 10 February 2022.
  3. 1 2 "Federal Judge Approves First Stage of Celadon Bankruptcy Plan". 12 December 2019. Archived from the original on December 13, 2019. Retrieved December 14, 2019.
  4. 1 2 3 Ronan, Dan (24 January 2020). "Celadon Reaches Deal to Sell Taylor Express for $14.5 Million". Transport Topics. Archived from the original on 16 August 2021. Retrieved 16 August 2021.
  5. ↑ Mall, Scott (11 March 2021). "FreightWaves Haul of Fame: Land Span, Inc. lasted nearly 88 years". FreightWaves. Archived from the original on 16 August 2021. Retrieved 10 February 2022.
  6. ↑ Smith, Jennifer (3 April 2018). "NYSE Moves to Delist Shares of Trucker Celadon". Wall Street Journal. ISSN   0099-9660 . Retrieved 10 February 2022.
  7. ↑ Huff, Aaron (15 April 2019). "Celadon Group sells TA Services its logistics division". Commercial Carrier Journal. Archived from the original on 16 August 2021. Retrieved 16 August 2021.
  8. ↑ "TA Services Acquires Logistics Arm of Celadon Group". Truckinginfo. Heavy Duty Trucking. 15 April 2019. Archived from the original on 16 August 2021. Retrieved 16 August 2021.
  9. ↑ "Celadon Group, Inc. Enters into Corporate Resolution for Securities Fraud and Agrees to Pay $42.2 Million in Restitution". justice.gov. April 25, 2019. Archived from the original on 2019-07-18. Retrieved 2019-12-05.
  10. ↑ "SEC Charges Former Executive of Indianapolis-Based Truckload Freight Company with Accounting Fraud". SEC. Archived from the original on 2019-12-25. Retrieved 2019-12-25.
  11. ↑ "SEC Charges Trucking Executives With Accounting Fraud". SEC. December 5, 2019. Archived from the original on 2019-12-06. Retrieved 2019-12-05.
  12. 1 2 3 "Bankrupt Celadon's Mexican carrier Jaguar Transportation reportedly halts services". 2019-12-12. Archived from the original on 2019-12-14. Retrieved December 14, 2019.
  13. ↑ "Celadon Group makes bankruptcy official, shuts down after 34 years". 9 December 2019. Archived from the original on December 13, 2019. Retrieved December 14, 2019.
  14. ↑ Ashley (2020-03-03). "Defunct Celadon places company HQ and driver dorm assets up for auction". CDLLife. Archived from the original on 2020-03-04. Retrieved 2020-03-04.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.