Another large trucking company suddenly shuts down, latest in string of failures (with video)
Editor’s note: This story was updated to reflect that the company’s CEO says he is working to bring drivers home.
HVH Transportation, a 344-unit trucking company, has abruptly shut down. It’s the latest in a string of trucking failures stemming from an economic environment that has put pressure on operating ratios.- According to the article in the freightwaves.com and its author Craig Fuller, CEO at FreightWaves
“The Denver, Colorado truckload carrier operated in all contiguous states west of the Appalachian mountains, with the exception of the deep South. According to Pitchbook, the trucking company had been operating since 1956 and was acquired by HCI Equity Partners, a private equity firm, in October 2012.
HCI Equity Partners has $957 million dollars in assets under management and has made investments in trucking and logistics buy-outs in the past, including investments in Road Runner (NYSE: RRTS) Naumann Hobbs Material Handling, GO2 Logistics, Milan Supply Chain, Southern Ag Carriers
Initial reports in the wake of the abrupt shutdown indicated that the company left drivers stranded over the road, in a situation that was eerily similar to the sudden closure of Falcon Transport, another private equity-backed trucking company that abruptly closed earlier this year.
Subsequent to the publication of this story, the company’s CEO, John Kenneally, said he is actively working to avoid stranding drivers and get them back home.” – Fuller also wrote in his article.
Read the full story HERE
Source and credits: freightwaves.com / Craig Fuller, CEO at FreightWaves and iTrucker / Mario Pawlowski