Yellow (NASDAQ:YELL) stock is dropping on Monday after the U.S. trucking company finally filed for bankruptcy after reports last month claimed it would do so.
A press release from the company notes it filed for bankruptcy in the U.S. Bankruptcy Court for the District of Delaware. With this filing, the company says it plans to start winding down its operations.
The filing from Yellow notes that this bankruptcy will result in the loss of 30,000 jobs. Yellow also doesn’t hide the fact that it blames the International Brotherhood of Teamsters for the death of its business.
According to Yellow, the Teamsters Union stood in the way of its One Yellow plan. The company says this was developed to modernize its business and better compete against rivals.
Here’s what Yellow CEO Darren Hawkins said about the matter:
“We faced nine months of union intransigence, bullying and deliberately destructive tactics. A company has the right to manage its own operations, but as we have experienced, IBT leadership was able to halt our business plan, literally driving our company out of business, despite every effort to work with them.”
The Teamsters blamed the company’s history of mismanagement despite receiving billions in Federal bailouts.
What This Means for YELL Stock
Considering Yellow is preparing to close down its business, it doesn’t seem likely that YELL stock will be around much longer. The company’s shares will potentially be delisted from the Nasdaq Exchange, and there’s no guarantee the stock will exist much longer after that.
YELL stock is down 42% as of Monday morning.
Investors seeking out more of the most recent stock market news will want to keep reading!
We have all of the biggest stock market stories that traders need to know about on Monday! That includes what’s going on with shares of Tivic Health Systems (NASDAQ:TIVC) stock, AgriFORCE Growing Systems (NASDAQ:AGRI) stock, and Save Foods (NASDAQ:SVFD) stock today. You can read up on all of these matters at the links below!
More Stock Market News For Monday
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- Why Is AgriFORCE Growing Systems (AGRI) Stock Up 67% Today?
- Why Is Save Foods (SVFD) Stock Up 128% Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
