The sudden failure of Alabama-based flatbedder Montgomery Transport is a story of near-financial salvation unwound at the eleventh hour, sending the carrier into bankruptcy.
Montgomery Transport shuttered its 450-truck operation Friday, and the closure, former office employees told CCJ, was both immediate and sudden. "We were not given the chance to say goodbye," one said anonymously.
"Like losing family members," added another.
"A shock," said a third.
A communication sent to drivers Friday from Vice President of Operations Mike Moss, seen by CCJ, told drivers to deliver any current loads but not to pick up any new loads. Trucks near the company's Birmingham, Alabama, terminal were directed to return, while drivers close to home were instructed to go there and "await further instruction."
Moss spelled out a timeline dating back four months to when Montgomery Transport's majority owner, One Equity Partners, decided to exit the transportation sector. In July, the communication said, Alabama-based P&S Transportation (CCJ Top 250, No. 21) began the process of acquiring Montgomery Transport with an anticipated closing date on or before Sept. 30.
However, just a week before the potential closing date, Moss's message claims that company founder Rollins Montgomery filed a suit to block the sale, forcing the company into receivership. The company intended to follow through with the sale via Chapter 11 proceedings, but "due to creditors not being able to agree on consensus terms, there was no option remaining but to enter into Chapter 7 and close operations."
Rollins Montgomery, who founded the company in 2011, refuted via statement "speculation suggesting that my actions, including recent litigation with the majority owners of Montgomery Transport and other parties, are somehow responsible for the company's challenges. That simply is not true."
Private equity firm One Equity Partners made an undisclosed investment in Montgomery Transport in February 2022, becoming a major stakeholder, and Rollins Montgomery added that "current circumstances stem from financial decisions that were beyond my control. I have not had a controlling interest in the company since February 2022."
Montgomery Transport had overhauled its leadership team this year, including the appointment of Moss and a new Chief Financial Officer in April. The company in January appointed Todd LaFleur Chief Operating Officer. His most recent position was serving as Director of Operations, Land Product-USA at DB Schenker, leading operational initiatives for nearly five years. He also held leadership roles such as Vice President of LTL at Emerge, where he advanced less-than-truckload operations, and Vice President of Operations at Roadrunner Freight Systems (No. 91) for five years.
"I am incredibly proud of what Montgomery Transport and its affiliates have accomplished and am deeply grateful to the drivers, employees, customers, vendors, and partners who made it a respected name in the transportation industry," he continued. "These people have been the backbone of the company from day one. I remain confident in the strength and resilience of those who helped build this organization and continue to wish the team every success moving forward. All the employees who have lost their jobs will remain in my thoughts and prayers."
