Yellow in Talks to Sell Its Logistics Business

Date: Friday, July 28th, 2023
Source: Wall Street Journal

Trucking company Yellow said it is in talks with multiple parties about selling Yellow Logistics as the financially ailing operator seeks to raise cash.

Yellow didn’t say who the company is talking with but said in a statement Thursday that discussions are “active and ongoing.”

Shares of Yellow initially rose in post-market trading before falling back to 57 cents a share, where they closed the regular session, down 44%.

The Wall Street Journal reported Wednesday that Yellow is preparing to file for bankruptcy protection.

The Nashville, Tenn.-based carrier is in the midst of a liquidity crisis and is seeking to raise cash as it copes with a heavy debt load, seeks to make a deferred pension and benefits contribution, and negotiates with the Teamsters union on a new contract.

The company’s cash drain has accelerated in the past two weeks, according to equities analysts, following a threatened strike by the International Brotherhood of Teamsters. Shipping customers, including retailers and manufacturers, have shifted large volumes of goods away from the carrier.

The company doesn’t break out the revenue in its logistics unit in its earnings reports. It said the business, which operates through an independent, nonunion subsidiary of Yellow, offers distribution, warehousing and other logistics services.

It said in its 2022 annual report that Yellow Logistics operates six warehouses.

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