Becky Yerak of The Wall Street Journal reports on what went wrong with Kal Freight. Yerak writes:
Trucking company Kal Freight filed for bankruptcy protection, saying its financial condition has been hurt by unprofitable efforts to become a vertically integrated business and a now-questionable investment in additional vehicles during the height of the Covid-19 pandemic.
The closely held company also faces litigation, including foreclosure actions, according to a filing Thursday in the U.S. Bankruptcy Court in Houston. […]
“As demand for trucking services waned, however, once stay-at-home orders dissipated, diesel prices soared, interest rates rose, and there was a sudden glut of trucks and drivers throughout the United States,” Sharp said.
Read more here.
