YELL - Here's Why What Happened to Yellow (Probably) Won't Happen to UPS
2023-08-11 17:19:00 ET
Earlier this week, trucking company Yellow Corporation (NASDAQ: YELL) filed a Chapter 11 bankruptcy petition with the Delaware district's U.S. Bankruptcy Court, simultaneously announcing it would begin winding down all operations. The company's been largely unprofitable for years now, and with no end to these losses in sight, CEO Darren Hawkins notes, "It is with profound disappointment that Yellow announces that it is closing after nearly 100 years in business."
The announcement, however, also took a parting shot at the labor union representing Yellow's workers. It reads, "We faced nine months of union intransigence, bullying, and deliberately destructive tactics. A company has the right to manage its own operations, but as we have experienced, IBT [International Brotherhood of Teamsters] leadership was able to halt our business plan, literally driving our company out of business, despite every effort to work with them."
Is that truly the root cause of the bankruptcy? Maybe. Or maybe not. It's a complicated matter and difficult to point to a culprit.
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Here's Why What Happened to Yellow (Probably) Won't Happen to UPS