The logistics and trucking industry has faced economic challenges over the last two years that have been known as the Great Freight recession.
Financial distress among companies in the industry has been the result of a bad economy; decline in demand; low freight rates; rising costs of labor, fuel, and insurance driven by inflation; and fallout from the Covid-19 pandemic, which created a glut of trucks and drivers in the U.S.
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Several trucking companies shut down operations, suffering severe financial issues, but didn’t file for bankruptcy, including LTI Trucking, with about 250 drivers, which shut down its operations on April 2.
Related: Huge trucking company files for Chapter 11 bankruptcy
LTI’s closing was followed by another trucking company, Davis Express Inc., which also didn’t file for bankruptcy.
Florida-based Davis Express revealed on its Facebook page that the company would shut down its business permanently after making its final deliveries on April 23 and returning all trucks to its terminal by April 30.
Logistics and trucking companies also have filed for bankruptcy to reorganize their businesses and restructure debt, including AZA Transportation Inc., which filed for Chapter 11 bankruptcy on May 14.
Transportation and logistics company files for bankruptcy
Transportation and logistics company Balkan Express and its affiliate Balkan Logistics filed for Chapter 11 bankruptcy to restructure their debts on April 30. Balkan Express operates 159 power units and employs about 166 drivers who ship general freight, including beverages.
Also, major trucking and logistics company Elite Carriers and four affiliates filed for Chapter 11 bankruptcy protection on May 21 to restructure their debts.
The company, which operates 70 trucks and employs 70 drivers, transports goods from the Midwest to the East Coast and Canada, according to its website.
KPower Global Logistics files for bankruptcy to reorganize.
Image source: Shutterstock
KPower Global Logistics files for Chapter 11 bankruptcy
And now, a huge logistics and trucking company, KPower Global Logistics LLC, filed for Chapter 11 bankruptcy protection to reorganize its business almost four months after its affiliate Reliable Healthcare Logistics LLC filed for bankruptcy.
Related: Another major internet company files for Chapter 11 bankruptcy
The Memphis, Tenn.-based logistics and trucking provider filed its petition on May 8 in the U.S. Bankruptcy Court for the Western District of Tennessee listing $1 million to $10 million in assets and liabilities.
The petition indicates that funds will be available to distribute to unsecured creditors.
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KPower Global Logistics’ affiliate Reliable Healthcare Logistics filed its petition in the same court on Jan. 19, 2025, also listing $1 million to $10 million in assets and liabilities.
Reliable Healthcare Logistics listed its largest unsecured creditors in its petition, including law firm Bass, Berry & Sims, owed over $1 million; FedEx Freight of Pittsburgh, owed over $632,000; and FedEx Ground of Dallas, owed over $632,000.
Both KPower Global and Reliable Healthcare listed their headquarters at the same address on their petitions at 4105 S. Mendenhall in Memphis.
Reliable Healthcare Management’s website, however, lists an address and phone number in Boca Raton, Fla., but no one answers any of the phone extensions.
KPower Global Logistics’ website lists six facilities, in addition to its Memphis headquarters, which include McDonough, Ga.; Olive Branch, Miss.; North Brunswick, N.J.; Springfield, Tenn., Clarksville, Tenn.; and Arlington, Texas.
The logistics, shipping, and trucking company, which has 5,000 employees, provides a variety of warehousing services, including bulk storage; cold storage; custom packaging, repack, and kit building; cross-dock and transload solutions; e-commerce order fulfillment; returns management; and sort and segregate, according to its website.
The company also provides staffing services, transportation services, freight bill audit and freight payment services, warehouse management services, yard management services, transportation management services, consulting services, short- and long-term rental space, special projects, and other specialties.
KPower Global Logistics did not immediately respond to a request for comment.
Related: Major internet company files for Chapter 11 bankruptcy
