WACO, Texas — Citing steep operating losses that could not be overcome, executives with Waco, Texas-based Central Freight Lines announced Sunday that the company will close by the end of December.
The closure means that 2,100 employees at the less than truckload carrier (LTL) will be jobless right at Christmastime. New shipments will stop Monday and all current orders are expected to be completed by Dec. 20, according to a news release.
“We make this announcement with a heavy heart and extreme regret that the company cannot continue after nearly 100 years in operation,” the news release stated.
“We would like to thank our outstanding workforce for persevering and for professionally completing the wind-down while supporting each other. Additionally, we thank our customers, vendors, equipment providers, and other stakeholders for their loyalty and support.”
The news release further stated that the company “explored all available options to keep operations going. However, operating losses sapped all remaining sources of liquidity, and the company’s liabilities far exceed its assets, all of which are subject to liens in favor of multiple creditors.”
Company officials said that “despite diligent efforts,” Central “was unable to gain commitments to fund ongoing operations, find a buyer of the entire business, or fund a Chapter 11 reorganization. Given its limited remaining resources, the company concluded that the best alternative was a safe and orderly wind-down. As we complete the wind-down process, our primary goal will be to offer the smoothest possible transition for all stakeholders while maximizing the amount available to apply toward the Company’s obligations.”
Central Freight is in negotiations to sell a substantial portion of its equipment. Additionally, Central Freight is coordinating with other regional LTL carriers to afford its employees opportunities to apply for other LTL jobs in their area. Discussions are ongoing and no purchase of assets or offer of employment is guaranteed.
Central Freight Lines was founded in 1925 in Waco by W.W. “Woody” Callan Sr., who bought a Model T and drove it from Waco to Dallas to pick up some goods for a Waco merchant. The company was founded as Central Forwarding and Warehouse company.
Through the years, the company grew to become one of the nation’s largest LTL carriers.
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