Freightways Corp. filed for Chapter 11 bankruptcy protection Tuesday
and canned15,500 workers throughout the country. Operations of
the company's CF AirFreight and Canadian Freightways Ltd. units
are continuing normally, and their employees will keep their jobs,
the company said.
trucking company's stock had tumbled since it requested an extension
in filing its second-quarter earnings in mid August and announced
it might be de-listed from the Nasdaq stock market.
first three months of 2002, CF lost $36.5 million on $463 million
in revenue. The Vancouver, WA-based company lost $104.3 million
last year and $7.6 million in 2000.
into the company on Labor Day heard a recorded message from Chief
Executive John Brincko telling them not to show up Tuesday. Employees
also were told by the recording their "employment ends immediately."
mailed to workers Tuesday, the company said it simply didn't have
enough money to continue operations. The company's stock traded
on the Nasdaq market at more than $18 in early 1999, but closed
at just 71 cents Friday.
CF, the nation's
third-largest less-than-truckload carrier, has 350 terminals and
30,000 trucks in the United States, Canada and Mexico. The country's
largest less-than-truckload carrier is Yellow Corp. of Overland
Park, KS, followed by Roadway Corp of Akron, OH.