New England Motor Freight ( NEMF) declared shocking bankruptcy
Today New England Motor Freight Company shocked the trucking world by announcing that they are filling for Chapter 11 bankruptcy and they shutting down all operations immediately !
NEMF was 17th larges carrier i the U.S. with revenue over $400 million !
NEMF also had 10 subsidiary companies and they will be also shutting down.
President of NEMF Thomas W. Connery wrote the letter to all employees to inform them about bankruptcy :
To The Workers of NEMF:
It is with a heavy heart that I am writing this letter to inform you of our intent to undertake a wind down and liquidation of our company, New England Motor Freight.
The costs of running an asset based trucking company have soared; with labor and benefits consuming an ever large portion of revenue. Add in the high cost of equipment, a severe industry shortage of drivers, ever increasing regulations and tolls, technology investments and the overall risk environment of our business.
After much discussion as well as consultation with outside financial advisors, it was concluded that it does not make sense to continue operations to support a business in which our margins continue to shrink, thereby resulting in significant financial losses.
No one is more devastated than our Chairman Myron “Mike” Shevell and his family, namely Nancy, Susan and Zachary. They built this company by walking hand in hand with thousands of dedicated workers like yourself. To all of our co-workers, many of whom are dear friends and to our thousands of customers, the family extends sincere gratitude and they share in our collective sorrow that we could not continue to operate this great enterprise.
Our cooperate offices and human resources department will provide further information today as we move forward with the wind down.
Thomas W. Connery
President and Chief Operating Officer