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From the Journal of Commerce US Surface Transport newsletter 11-2-23
Yellow may have closed its doors July 30, but its story is not yet finished. News that car hauler Jack Cooper Transport is interested in bidding for Yellow and restarting it shocked and puzzled industry analysts and less-than-truckload(LTL) competitors this week. Reuters first reported Jack Cooper Transport’s interest in a “going concern” bid for a carrier that hasn’t gone anywhere in three months.
A source close to the negotiations told the Journal of Commerce this week that Jack Cooper’s interest in Yellow is real, and that their bid would probably be somewhere between $2 billion and$3 billion and would include terminals scheduled to be auctioned this month as well as tractors and trailers. This depends, however, on the US Treasury Department extending its $700 million loan to Yellow into 2026.
The goal, the source said, is to create a privately owned LTL company separate from Jack Cooper Transport with a Teamster workforce. Rehiring former Yellow Teamsters would take time, but could be done, said the source, who spoke on condition of anonymity. “We’re as close as ever to bringing these jobs back and closing a gap in the economy caused by the collapse of Yellow,” the source said.
Industry analysts are doubtful and tell the Journal of Commerce that a bid for the assets of Yellow would only be the tip of the iceberg when it came to the costs of restarting even a smaller version of Yellow. They also ask where the money – both for the asset bid and for eventual operations – would come from, and that’s also a question that has yet to be answered. And answers will have to come quickly.
Bids for the terminals owned by Yellow are due by Nov. 9, with an auction date set for Nov. 28. Yellow’s rolling stock of tractors, trucks and trailers are expected to be liquidated by Ritchie Bros.Auctioneers and Nations Capital. Any window of opportunity for a new bid or counter bid will close soon.
-- William B. Cassidy, Senior Editor
Yellow may have closed its doors July 30, but its story is not yet finished. News that car hauler Jack Cooper Transport is interested in bidding for Yellow and restarting it shocked and puzzled industry analysts and less-than-truckload(LTL) competitors this week. Reuters first reported Jack Cooper Transport’s interest in a “going concern” bid for a carrier that hasn’t gone anywhere in three months.
A source close to the negotiations told the Journal of Commerce this week that Jack Cooper’s interest in Yellow is real, and that their bid would probably be somewhere between $2 billion and$3 billion and would include terminals scheduled to be auctioned this month as well as tractors and trailers. This depends, however, on the US Treasury Department extending its $700 million loan to Yellow into 2026.
The goal, the source said, is to create a privately owned LTL company separate from Jack Cooper Transport with a Teamster workforce. Rehiring former Yellow Teamsters would take time, but could be done, said the source, who spoke on condition of anonymity. “We’re as close as ever to bringing these jobs back and closing a gap in the economy caused by the collapse of Yellow,” the source said.
Industry analysts are doubtful and tell the Journal of Commerce that a bid for the assets of Yellow would only be the tip of the iceberg when it came to the costs of restarting even a smaller version of Yellow. They also ask where the money – both for the asset bid and for eventual operations – would come from, and that’s also a question that has yet to be answered. And answers will have to come quickly.
Bids for the terminals owned by Yellow are due by Nov. 9, with an auction date set for Nov. 28. Yellow’s rolling stock of tractors, trucks and trailers are expected to be liquidated by Ritchie Bros.Auctioneers and Nations Capital. Any window of opportunity for a new bid or counter bid will close soon.
-- William B. Cassidy, Senior Editor
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