New England Motor Freight, a less-than-truckload carrier with heavy operations in the northeast and No. 67 in the CCJ Top 250, announced Tuesday it will be ceasing operations and will file for Chapter 11 bankruptcy.
The Elizabeth, N.J.-based company operated nearly 2,000 power units and employed more than 1,700 drivers. NEMF says it posted losses the last two years, despite bringing in half a billion in revenue, according to data in the CCJ Top 250. The Wall Street Journal reported Tuesday that the company owes tens of millions of dollars to creditors and was weighed down by union pension funds.
Vincent Colistra, a senior managing director with NEMF advisor Phoenix Management, cites “two years of losses” and “continuing and unsustainable rises in overhead as well as a severe industry shortage of drivers” as reasons for the company’s move to file for bankruptcy and close its doors.
