GDS Express Group Inc. of Akron, Ohio, filed for bankruptcy protection on Dec. 27, stating that its revolving credit line was closed. The company had shuttered operations just days before Christmas.
In its filing with the U.S. District Court for the Northern District of Ohio, GDS Express Group, which owns GDS Express, “states that it has one to 49 creditors and assets and liabilities of $50,000 or less.”
While the company filed for Chapter 11 protection, which allows struggling carriers to restructure, GDS seeks to liquidate its assets in the petition, stating no funds will be available after administrative expenses are paid.
Some employees told FreightWaves they are still working on a week-to-week basis as the company winds down business operations.
Just days before Christmas, employees were on the job working to get drivers home after news broke that the carrier was shuttering operations.
Just after the closure, former drivers and employees had no idea why the trucking company abruptly ceased operations.
The business collapsed shortly after one of GDS Express’ lenders, Northwest Bank, shut off the company’s access to its revolving credit line, according to the Akron Beacon Journal.
GDS had around 75 drivers, according to the Federal Motor Carrier Safety Administration SAFER website. The company also offered a lease-purchase program and was recruiting owner-operators just weeks prior to the closure.