Cross Creek Trucking laid off more than 200 truck drivers in December 2011 because of “restructuring.” A company official announced on Tuesday, Jan. 17, that Cross Creek will reopen in the near future, but with a much smaller fleet of trucks initially.
Last week, Integrated Freight Corp. of Sarasota, FL, which owns Cross Creek, announced it had completed a $3.6 million refinancing and restructuring equipment deal.
Roger Kennedy, spokesman for Cross Creek Trucking and general manager of Integrated Freight Services, told Land Line on Tuesday that their plan is to “restart in seven to 10 days.”
“It will be a slow process, starting with 10 to 15 units at a time,” Kennedy said. “We are in the process of contacting drivers that would like to return to work.”
As of press time Tuesday, the main phone lines at Cross Creek were still “temporarily disconnected.” The Federal Motor Carrier Safety Administration’s website did not report a pending application to reinstate authority or proof of insurance for Cross Creek. The agency revoked Cross Creek’s operating authority in mid-December for failure to carry the required $750,000 insurance policy.
Some drivers were stranded without fuel and under loads in mid-December 2011, when they were notified that the company’s insurance policy had been canceled.
In the past year, two trucking companies that IFC has purchased – Triple C Transport of Doniphan, NE, and Cross Creek in Medford, OR – experienced financial woes after being acquired. Triple C, which once had 131 drivers, was permanently shut down in May 2011. Cross Creek, which once had more than 200 drivers, may put only 10 to 15 drivers at a time back to work when – or if – FMCSA reinstates their operating authority.
Paul A. Henley founded IFC in 2008 with the “purpose of acquiring and consolidating operating motor freight companies through a nationwide roll-up strategy.”
According to IFC’s latest U.S Securities and Exchange Commission filing, IFC plans to “invest more heavily as demand improves for truckload services, including additional acquisitions.”
The company also launched its own brokerage operations for Integrated Freight Services in April 2011, according to the SEC report.
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