Greatwide Logistics Worldwide Files Bankruptcy Cases in Delaware
Yesterday, GWLS Holdings, Inc. and its related debtors filed petitions under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The debtors have requested that these cases be jointly administered under case number 08-12430. The Honorable Peter J. Walsh is presiding over these cases.
The debtors’ principal business is Greatwide Logistics Worldwide. According to its website, Greatwide was founded in Dallas, Texas in 2000, and “is a third-party logistics services company with annual revenues of approximately $1.2 billion. Greatwide is ranked No. 11 on the Transport Topics Top 50 and is one of the fastest growing companies in the Dallas/Fort Worth area. The company has four primary lines of business: dedicated transport, truckload management, truckload brokerage and distribution logistics.”
According to the affidavit of Chief Financial Officer Stephen Bishop in support of the debtors’ first day pleadings, among the most significant challenges faced by the debtors in the run-up to the filing of these cases were the recent significant increases in fuel costs, industry-wide freight declines, and unexpected demands from their insurers for additional collateral. The debtors have commenced these cases to accomplish a sale of their assets to certain of their prepetition lenders under section 363 of the Bankruptcy Code, subject to a competitive bidding process. The debtors contemplate closing such a sale by January 31, 2009.
Couldn't have happened to a nicer company. This company was and is a joke to haul for....we are better off without them.
Why can the owner-operators of Brisk and Greatwide still maintain successful operations? Even with the outrageous increase in fuel prices. The increase in prices of tires, parts, insurance, etc. Why is it that just a bunch of "truckdrivers" can have profitable businesses and the "professional" college educated boneheads that are in charge somehow cannot achieve the same results? I would love to hear their excuses. The proof is in print. They cannot deny they were irresponsible.