In February 2022, Arnold Transport was acquired by Pride Group Logistics, a subsidiary of Pride Group Holdings of Mississauga, Ontario, one of Canada's largest trucking and rental companies. Pride Group and its subsidiaries, including the four companies listed above, filed for creditor protection in Canada on March 28, citing overcapacity and low rates. Pride Group explained in court filings that "Arnold was not profitable and therefore Pride Logistics financed Arnold's operations." "Some of Arnold's dispatchers are paid through Pride Logistics' payroll," it said.
According to the Federal Motor Carrier Safety Administration's SAFER website, Arnold Transport had 341 truck drivers and 402 power units at the time of its closure. FreightWaves reported in April that Pride Group owed more than $637 million to creditors and was seeking bankruptcy protection due to overcapacity and low rates, according to President and CEO Sulakhan “Sam” Johal. They founded the company in 2010 with his brother, Jasvir Johal, who is the vice president. According to Sam Johal, the company stated in court filings that it was profitable until the pandemic. It is stated that after the decline in the trucking industry following the pandemic, the family company became unable to pay its debts.
157 WORKERS WILL BE DISLAYED
Former Arnold Transportation drivers reported being laid off without warning on April 25 and announced that their health benefits were also canceled. The company listed assets of up to $10 million and liabilities of $10 million to $50 million, according to the petition filed in Delaware on Tuesday. The petition states that he has up to 199 creditors and that the funds will be available for distribution to unsecured creditors. No creditors are named in Arnold Transport's simple petition. Arnold Transportation Services announced Wednesday it would lay off 157 workers, about a week after it closed. Introduced Worker Adjustment and Retraining Notification (WARN) Act. It was stated that companies with more than 100 employees must provide 60 days' notice of planned closure.
Prior to the closure, the company's trucks were inspected 270 times and 60 trucks were taken out of service, resulting in an outage rate of 22.2% in the previous 24-month period. This rate was slightly below the industry's national average of 22.3%, according to FMCSA. The company's drivers were inspected 432 times and 11 were taken out of service over a two-year period, resulting in an out-of-service rate of roughly 2.5%. The national average for drivers is approximately 6.7%. In the last two years, Arnold Transport's trucks were involved in four fatal crashes, 10 injury crashes and 17 pull-overs. Pride Group's bankruptcy attorney, Penelope Jensen, did not respond to FreightWaves' request for comment. It was revealed that Pride Group was granted creditor protection under the Canadian Companies Creditors Arrangement Act (CCAA) after Mitsubishi HC Capital filed lawsuits accusing Pride Group of defaulting on payments it had personally guaranteed. Mitsubishi HC Capital is demanding $100 million in damages in the lawsuits.
Source: freightwages.com
