Midland Transportation in Marshalltown, IA, closed its doors last week, laying off about 700 without notice. The shutdown affected 400 employees in Iowa and 300 in five other states, including a small number of owner-operators.

Employees were told the morning of July 24 to pick up personal belongings and be out by noon. Drivers were told to make deliveries and return to the terminal where company officials told them they were shutting the doors.

According to the Times Republican, the decision to shut down came after media sources learned payroll checks were not being honored by its bank. Attorneys for F & M Bank announced the company owed more than $7.8 million and foreclosure had begun in June.

Des Moines attorney Donald Neiman, who was appointed to oversee assets for Midland, said everything possible would be done to pay obligations. Neiman told reporters he planned to ask the court to begin liquidation procedures.

A company e-mail to employees said the company now owning Midland is Strac Incorporated. Ron Schoberg, a truckdriver for the company, indicated he thought the company had some hope of staying open though the situation was unclear. "We knew a lot of this was going on," he said. "We thought they had a buyer, but there was no agreement, I guess."