Iconic trucking company that hauled beverages for many files for bankruptcy after 41 years citing up to $50m debt
The jobs of 255 drivers at a major Midwest trucking company have been impacted by the company’s bankruptcy filing.
With its headquarters in Strafford, Missouri, RBX Inc. has been operating for over 40 years and ships cargo throughout the Midwest and Southeast in 265 vehicles.
According to supply chain intelligence platform FreightWaves, the family-owned business filed for Chapter 11 bankruptcy, although no explanation was provided for the decision.
According to the United States Courts website, Chapter 11 bankruptcy allows debtors to restructure their firm to continue operating.
Up to 199 creditors are reportedly impacted, but the amount owed to them is not specified.
Liabilities range from $10 million to $50 million, while assets are reported up to $50,000.
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According to the site, unsecured creditors would not be able to access funds.
The RBX website states that the company has a fleet of 53-foot dry van trailers and more than 200 power units.
Jim Keltner is the current CEO of the company, which was founded in 1983.
On Friday, December 13, it filed for Chapter 11 bankruptcy in the Western District of Missouri U.S. Bankruptcy Court.
TRUCK LOAD OF TROUBLE
In recent years, there have been several high-profile trucker bankruptcy, this being the most recent.
In August 2023, Yellow, one of the biggest freight firms in the United States and a company founded in 1924, filed for Chapter 11.
It employed 30,000 people at the time and owed about $2.5 billion.
According to the US Sun at the time, Darren Hawkins, the CEO of Yellow, stated: After almost a century in business, Yellow announces its closure with great disappointment.
“Yellow gave hundreds of thousands of Americans stable, well-paying jobs and rewarding careers for generations,” he continued.
Elmer BuchtaTrucking LLC, its owner Transport Acquisitions LLC, and three additional affiliates filed for Chapter 11 bankruptcy in Indiana one month later, in September 2023.
How does bankruptcy work?
A certain legal procedure called bankruptcy assists businesses in getting rid of debt they are unable to pay back.
Businesses can start over and obtain new credit through the process.
According to Investopedia, bankruptcies, which are overseen by federal courts, make it easier for a business to sell off its assets in order to satisfy its creditors.
Restructuring a firm with the intention of staying open, even if it means selling off the majority of the company’s assets, is accomplished through Chapter 11, a regular procedure for businesses.
In contrast, Chapter 7 puts a business out of business by selling all of its assets.
In contrast, Chapter 15 permits cooperation between U.S. and foreign courts to handle bankruptcy cases involving “parties of interest involving more than one country,” according to the U.S. Courts.
With over 300 units, Evansville-based Elmer Buchta was Indiana’s biggest bulk hauler.
According to the bankruptcy court filing, it has been in business for more than 80 years and had assets ranging from $1 million to $10 million and liabilities ranging from $10 million to $50 million.
RETAIL CASUALTIES
Retail has been severely impacted by bankruptcies in recent years, so it’s not only the freight industry.
In April 2023, Bed Bath & Beyond filed for Chapter 11 bankruptcy, closing all 360 of its locations.
After Overstock acquired the business, it relaunched BedBathandBeyond.com in August of that year.
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Chain of Discount StoresIn February 2023, Tuesday Morning declared Chapter 11 bankruptcy, which resulted in the closure of 200 locations.
During the coronavirus pandemic in May 2020, it had already declared bankruptcy and made several fruitless attempts to continue operations by closing several locations.
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