The liquidation of trucking giant Pride Group could affect freight rates and the driver market across the industry, according to an industry observer.
Pride Group, one of Canada’s largest trucking and leasing companies, filed for bankruptcy protection March 28, owing lenders $637 million.
Stakeholders recently dismissed a $56 million bid by members of the Johal family, which founded and operated Pride Group, to buy back the company. On Thursday, a court-ordered monitor filed documents indicating Pride Group’s operations and assets will be broken up to pay creditors.
“Given the feedback it has received to date, the monitor no longer views a … restructuring plan as a feasible option given the lack of stakeholder support for it,” bankruptcy monitor Ernst & Young wrote in its most recent report. “The Pride entities … [intend] to continue to move forward with a going concern sale or wind-down of the Pride Group Logistics entities.”