Nine Carriers, Logistics Firms File Bankruptcy as 245 Jobs Cut

How many freight jobs were cut in the latest round of closures?

Four companies eliminated 248 positions at logistics and distribution facilities across New Jersey, North Carolina, Illinois, and California in July, according to state Worker Adjustment and Retraining Notification filings. The cuts came as nine transportation and logistics companies filed for bankruptcy protection between late June and mid-July, spanning trucking, freight forwarding, warehousing, and trailer manufacturing.

Fusion Transport LLC, a New Jersey logistics provider, will lay off 79 employees at its Piscataway facility effective Oct. 1. The company provides freight management, warehousing, e-commerce fulfillment, and retail consolidation services. State filings did not clarify whether the facility will close permanently.

Frito-Lay will discontinue warehouse operations at its Raleigh, North Carolina distribution center on Sept. 6, cutting 68 positions. The company said affected workers will receive information about other openings and that it will attempt to place some employees at nearby locations.

D&H Distributing Co. is closing a logistics warehouse in Bolingbrook, Illinois, and laying off all 68 warehouse and operations employees. D&H distributes technology products and provides supply chain services to retailers and resellers. The state WARN notice did not explain what prompted the closure.

DHL Supply Chain will eliminate 33 positions at a Fullerton, California facility effective Sept. 3. The notice did not provide details about the decision to discontinue operations at the location.

Which carriers filed for bankruptcy in July?

Jackson and Son Hauling LLC, an FMCSA-registered motor carrier based in Ruther Glen, Virginia, filed for Chapter 7 bankruptcy protection on July 13 in the U.S. Bankruptcy Court for the Eastern District of Virginia. The carrier operated two trucks and employed two drivers at the time of the petition.

Victory Freight Corp., a San Bernardino, California-based trucking company, filed for Chapter 7 bankruptcy on July 2 in the Central District of California. Court records indicate the carrier cited a multimillion-dollar legal claim as one of its primary liabilities as it moves to liquidate its assets.

IPS Express Logistics Inc., a San Leandro, California transportation and supply chain company, also filed for Chapter 7 bankruptcy protection in the U.S. Bankruptcy Court for the Central District of California.

Talon Logistics Inc., a Woodland Hills, California-based drayage and intermodal carrier, filed for Chapter 11 protection on June 29. Bankruptcy records indicate the company operates approximately 40 to 50 power units and has invested heavily in zero-emission equipment, including electric and hydrogen-powered trucks serving the Los Angeles market. The filing suggests that even carriers making capital investments in newer equipment are not immune to the current financial pressure.

Los Dorados Cargo Inc., an international freight forwarder and courier serving Latin American markets, filed for Chapter 11 protection July 9 in the U.S. Bankruptcy Court for the Eastern District of New York. The Elmhurst, New York-based company listed assets of no more than $50,000 and liabilities ranging from $1 million to $10 million. It reported fewer than 50 creditors. Los Dorados Cargo maintains shipping routes to more than 12 Latin American countries, including Panama, Peru, and Venezuela.

Fuel Group Trading LLC filed for Chapter 11 protection July 8 in the Western District of Texas. The Round Rock-based wholesaler of gasoline, diesel, and other petroleum products listed assets of $500,000 to $1 million and liabilities of $100,000 to $500,000. The company has maintained operations in Texas and Puerto Rico.

What happened in the trailer market?

Two companies connected to the cargo trailer market filed for bankruptcy protection July 6.

Freedom Trailers LLC, an enclosed cargo trailer manufacturer based in Tifton, Georgia, filed in the Middle District of Georgia with assets and liabilities each estimated at between $1 million and $10 million. The company operates a manufacturing facility in Willacoochee, Georgia, and reported a workforce of between 100 and 249 employees. Freedom Trailers also operates as a motor carrier, with 20 registered drivers and two power units as of June. The company previously disclosed that the discovery of an alleged internal theft involving a former employee in 2024 caused a significant financial disruption.

Stryker Dealership Group LLC, a utility and cargo trailer wholesaler based in Piedmont, Alabama, filed for Chapter 11 protection in the Northern District of Alabama. Stryker reported assets of $100,000 to $500,000 against liabilities ranging from $10 million to $50 million. The company reportedly operated six facilities and employed between 30 and 60 people before the filing. The disparity between reported assets and liabilities suggests a particularly steep restructuring challenge.

Diesel Power Technology Inc. filed for Chapter 11 protection July 1 in the Eastern District of California. The Turlock-based company repairs and maintains diesel engines and industrial power equipment. It listed assets of $100,000 to $500,000 and liabilities of $50,000 to $100,000. The company continues to operate its Turlock facility while seeking to reorganize its financial obligations. The filing followed a period of customer disputes and legal challenges that reportedly contributed to deteriorating customer ratings and business conditions.

What the pattern means for small fleets

The breadth of the filings, from two-truck owner-operators to a 40-to-50-unit drayage fleet to a trailer manufacturer with up to 249 employees, shows financial stress across multiple freight segments. Chapter 7 liquidations outnumber Chapter 11 reorganizations among the carriers, meaning those companies are shutting down rather than attempting to restructure. For small fleets still operating, the pattern reinforces what settlement statements already show: margins remain thin, legal and operational missteps carry outsize consequences, and capital investments in equipment do not guarantee survival when freight demand stays soft. The warehouse closures at major shippers and third-party logistics providers signal continued caution in distribution networks, which translates to fewer loads moving through the system. Carriers competing for available freight face the same pressure that pushed these nine companies into court.