The trucking and logistics industry has faced economic distress in 2025, leading several transportation companies to shut down operations, while others have filed for bankruptcy protection.
The Great Freight Recession, which the industry has dealt with since 2022, has caused transportation businesses financial distress from reduced demand, lower freight rates, and rising costs for labor, fuel and insurance.
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Financial difficulties resulted in huge transportation company LTI Trucking, with about 250 drivers, to shut down its operations on April 2, but it had not filed for bankruptcy at last check.
Related: Huge trucking company closes permanently, no bankruptcy filed yet
The Madison, Ill., trucking company, which was established in 2005, had 300 tractors and 575 trailers. The company was a major shipper of products for AB InBev, KraftHeinz, Vlasic, Hershey’s, Nestle, Tyson, Hillshire Farm, Kroger, Hostess, and Sara Lee.
Michigan-based trucking company Equity Transportation Co. Inc., which had 100 drivers and 109 power units, in March laid off all of its drivers and ceased operations. The company did not indicate if it would file for bankruptcy and did not reveal a reason for closing down its business.
Distressed trucking company Wals Transport, which operates a fleet of commercial trucks and trailers, filed for Chapter 11 bankruptcy to reorganize its business, facing mounting debt.
The Antioch, Tenn., debtor listed $100,000 to $500,000 in assets and $500,000 to $1 million in debt in its Subchapter V petition filed on March 25 in the U.S. Bankruptcy Court for the Middle District of Tennessee.
Wals Transport’s largest unsecured creditors include the U.S. Small Business Administration, owed about $414,000; Fountain Equipment Finance, owed $78,000; and Blueridge, owed $50,000. Most of its debt is related to truck and trailer financing.
The debtor, which operates with at least two trucks and trailers, is known for hauling travel trailers and large vehicles, such as Airstream Travel trailers, small tour buses, and pickup trucks, according to its Facebook page.
The petition did not list specific reasons for filing for bankruptcy.
Several trucking companies have filed for bankruptcy in 2025.
Image source: Shutterstock
Small trucking companies file for bankruptcy
Another small trucking firm, Memphis, Tenn.-based Best Logistics Inc., filed for Chapter 11 bankruptcy on April 7 under a Subchapter V petition in the U.S. Bankruptcy Court for the Western District of Tennessee.
The debtor listed up to $50,000 in assets and $50,000 to $100,000 in debts in its petition. Its largest unsecured creditors include Shelby County Trustee, owed over $39,000 in taxes from 2018-2024, City of Memphis Treasurer, owed over $35,000 in taxes from 2014-2024, and the Internal Revenue Service, owed an unknown amount of payroll taxes.
Best Logistics indicated that funds would be available to pay unsecured creditors.
Related: Iconic trucking company closes down operations; no bankruptcy yet
Freight transportation and logistics company C&C Freight Network filed for Chapter 11 bankruptcy to restructure its debts, facing economic problems.
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The debtor listed $100,000 to $500,000 in assets and $1 million to $10 million in debts, including over $3.4 million in aggregate non-contingent liquidated debts, in its Subchapter V petition filed on April 7 in the U.S. Bankruptcy Court for the Northern District of Georgia.
The debtor indicated that no funds would be available to distribute to unsecured creditors.
C&C Freight operates with seven trucks and drivers out of its Braselton, Ga., headquarters, according to the Federal Motor Carrier Safety Administration’s SAFER website.
Finally, Dedham, Mass.-based Best Choice Trucking LLC filed for Chapter 11 reorganization on April 7 in the U.S. Bankruptcy Court for the District of Massachusetts, seeking to restructure its debts.
The debtor, established in 2017, listed $1 million to $10 million in assets and debts in its Subchapter V petition. The company, which operates a fleet of nine drivers and nine trucks, including Peterbilt trucks with specialized car-hauling trailers, owes major debt on vehicle financing through Digital Federal Credit Union, Midcounty Equipment, and Equity Financial, according to the petition.
Related: Another popular whiskey brand files for Chapter 11 bankruptcy
