Celadon Trucking reportedly left a lot of drivers out in the cold Monday – as they informed an estimated 3,000 plus that (A) they were out of a job (B) they needed to leave their trucks where they were parked and someone would come pick the rig up and (C) the company gas cards had been cancelled.
Some, who had the means to do so, footed the fuel bill themselves to get back home – and in the case of one now-former Celadon driver – that’s what he did to make it back from North Carolina to Cherokee County, when the news came down. A number of Cherokee County residents had been employed by the Indiana-based company and they’re now put in the uncomfortable position of being out of work, with Christmas just around the corner.
According to CBS News reports the Celadon Group announced Monday – just days after two former company officials were charged in an accounting fraud scheme – that they will file for Chapter 11 bankruptcy and shut down all operations. At that time they had almost 4,000 people on the payroll, and the company reportedly said another 500 administrative jobs are expected to be cut out through the bankruptcy.
Former President and Chief Operating Officer, 39 year old William Meek, and former Chief Financial Officer Bobby Lee Peavler, age 40, were both indicted on Conspiracy and other charges.
According to Channel 59 TV in Indianapolis, Indiana, where Celadon is headquartered – this could very well be the largest trucking industry bankruptcy ever recorded, In the Chapter 11 bankruptcy reorganization filing Celadon is listing $427 million in assets and debt which amounts to $391 million including a restitution payment of $33 million owed to the federal government as the result of a probe into a fraud scheme that investigators are claiming cost shareholders and investors $60 million due to the over-valuation of Celadon trucks.
Earlier in the year Celadon agreed to pay $42.2 million to settle securities fraud allegations stemming from the false reporting of profits and assets.
The good news is experienced truck drivers are in demand and hopefully most of those that were blindsided by Monday’s announcement will be able to secure other positions soon but as a family member of one of our local drivers points out, even under the best of conditions as a new employee each driver will still have to interview and then go through orientation – and during the holiday season, things are often at a standstill when it comes to hiring – so these displaced drivers will likely be without a job until after the first of the year.
Indianapolis Mayor Joe Hogsett and Employ Indy, Marion County’s workforce development agency, provided the following next steps for affected workers:
- Individuals separated from Celadon are encouraged to immediately file for unemployment insurance benefits with the Indiana Department of Workforce Development at:
- https://www.in.gov/dwd/2334.htm.
- All employees are encouraged to proactively visit Central Indiana WorkOne locations for career services assistance and indicate they are from Celadon.
- WorkOne locations in Central Indiana are accessible at:
- https://www.in.gov/dwd/WorkOne/locations.html.
- Additionally, the below resources are available to all Celadon employees:
- Connectivity to Ascend Indiana’s networking platform for job opportunities of professional staff with Central Indiana Corporate Partnership members at: http://bit.ly/Ascend3
- Immediate job search assistance at WorkOne Indy located at 4410 N. Shadeland Ave.;
- Dislocated worker training funds are available for displaced workers in Marion and Central Indiana who are interested in skilling up for their next career opportunity; and
- Complimentary personal finance assistance from Pete the Planner. Impacted workers can reach out to Pete and his team using the dedicated email address: celadon@petetheplanner.com.
(Information provided in part by FOX 59TV and by CBS News with related links provided below)
https://fox59.com/2019/12/09/celadon-bankruptcy-to-idle-4000-workers-3300-trucks/