Late yesterday New England Motor Freight (NEMF) filed for bankruptcy and will be going out of business. This will impact over $400 Million of capacity in the market when LTL carriers were already flush with business.
Vincent Colistra, a Senior Managing Director with Phoenix Management Services, LLC (“Phoenix”), and Chief Restructuring Officer (“CRO”) for the Company, said, “We have worked hard to explore options for New England Motor Freight, but the macro-economic factors confronting this industry are significant. Following two years of losses, and with continuing and unsustainable rises in overhead as well as a severe industry shortage of drivers, we have concluded that the Company has no choice but to proceed with an orderly wind-down of operations in a Chapter 11 proceeding.”
The NEMF accouncement
The Wall Street Journal article