Yellow Corporation shutting down, filing for bankruptcy
Yellow was known for providing mixed-load shipments from multiple manufacturers, including Walmart and Home Depot.
BENSALEM, Pennsylvania (WPVI) -- Employees who worked for Yellow Corporation spoke with Action News outside a facility in Bensalem, Pennsylvania after learning the company is shutting down.
After decades of service, they're frustrated it's come to this.
"With all the givebacks that we've given this company in the last 18 years, that they would've been able to get their stuff together and make it profitable again," said driver Joe Suarez.
"I had a feeling but I wasn't sure," said John Figueroa. "I never got a phone call. I never got nothing in the mail saying that we were actually closed."
The gates were locked and a sign said the company was ceasing operations as of noon Sunday.
According to a statement issued by Teamsters International, the union was served a legal notice on Sunday that Yellow Corporation was shutting down and filing for bankruptcy.
The freight company was nearly 100 years old and employed about 30,000 workers, 22,000 of them are union jobs.
Yellow Corporation received a $700 million pandemic-era loan in 2020.
"It's a shame that it shut down. It's the third largest LTL provider in the US, so we're going to feel the impacts," said Kathleen Iacocca, an associate professor at Villanova University.
Supply chain experts like Iacocca say it's unclear whether this will impact shipping costs at the consumer level.
Yellow was known for providing mixed-load shipments from multiple manufacturers, including Walmart and Home Depot.
"Yellow was very attractive because it was one of the cheapest in the industry. So there's going to be higher cost now simply because the lowest bidder is no longer available," said Iacocca.
Action News obtained the WARN noticed from Yellow notifying appropriate parties about the shutdown and employee layoffs:
