A major Birmingham-based trucking company has abruptly closed, leaving hundreds of Alabama employees without jobs.
Montgomery Transport Files for Chapter 7 Bankruptcy
According to Mutha Trucker, a YouTube channel that covers the trucking industry, Montgomery Transport LLC filed for Chapter 7 bankruptcy on October 8 and immediately ceased operations. The filing means the company’s assets will be liquidated rather than reorganized. Around 1,000 employees are now out of work.
Sale Plans Collapse After Lawsuit
Industry sources told Mutha Trucker that Montgomery Transport had been in the process of selling the business, with the deal expected to close on September 30. However, a lawsuit reportedly halted the transaction just days before the deadline. The company then attempted to pursue Chapter 11 bankruptcy to allow a sale to move forward, but creditors could not reach an agreement.
Uncertain Future for Workers
Montgomery Transport has not yet issued a public statement about the closure or its next steps. The shutdown marks one of Alabama’s largest recent transportation industry failures, leaving employees and contractors uncertain about the future of their pay, benefits, and equipment.
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