Consolidated Freightways files Chapter 11

| 9/4/2002

Consolidated 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.

The 73-year-old 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.

During the 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.

Workers calling 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."

In letters 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.