WACO, Texas – Citing high operating losses that could not be overcome, executives at Central Freight Lines, based in Waco, Texas, announced on Sunday that the company would close through December.
As a result of the closure, 2,100 employees of the pickup truck (LTL) will be unemployed at Christmas time. New deliveries will cease on Monday and all ongoing orders are expected to be completed by December 20th, according to a press release.
“We make this announcement with a heavy heart and with great regret that the company can no longer continue after almost 100 years,” said the press release.
“We would like to thank our excellent workforce for their perseverance and the professional handling of the dismantling as well as the mutual support. We also thank our customers, vendors, equipment suppliers and other stakeholders for their loyalty and support. “
The press release goes on to say that the company “has been researching all available options to keep operations going. Operating losses, however, have depleted any remaining sources of liquidity and the company’s liabilities far exceed its assets, all of which are lien in favor of multiple creditors. “
Company officials said that Central, “despite careful efforts, has not been able to obtain commitments to fund ongoing operations, find a buyer for the entire business, or fund a Chapter 11 restructuring. Given the limited resources remaining, the company concluded that safe and orderly settlement was the best alternative. Once the settlement process is complete, our primary goal will be to ensure the smoothest possible transition for everyone involved, while maximizing the amount available to meet the company’s obligations. “
Central Freight is in negotiations to sell a substantial part of its equipment. In addition, Central Freight coordinates with other regional LTL carriers to give its employees the opportunity to apply for other LTL jobs in their region. Discussions are ongoing and no asset purchase or employment offer is guaranteed.
Central Freight Lines was founded in Waco in 1925 by WW “Woody” Callan Sr. who bought a Model T and drove it from Waco to Dallas to pick up some goods for a Waco dealer. The company was founded as a central forwarding and storage company.
Over the years, the company grew into one of the largest LTL carriers in the country.
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