Nationwide Cargo’s Financial Crisis
In a shocking development in the transportation industry, Nationwide Cargo Inc., a prominent Illinois-based trucking company, filed for Chapter 11 bankruptcy protection. This company, founded in June 2010 and operating 183 trucks with 171 drivers, has faced a financial downturn. Nationwide Cargo, known for hauling general freight, fresh produce, and meat, filed the petition in the U.S. District Court for the Northern District of Illinois.
Financial Struggle and Bankruptcy Details
The bankruptcy petition reveals that Nationwide Cargo has assets ranging from $1 million to $10 million against liabilities between $10 million and $50 million. With up to 49 creditors, the company’s reorganization plans indicate no available funds for unsecured creditors after administrative expenses. Despite the absence of a detailed reason for the bankruptcy, these figures highlight the company’s financial struggles.
Inspection and Safety Records
Safety inspections have been a significant focus for Nationwide Cargo. The company’s trucks underwent 185 inspections over 24 months, with a 26% out-of-service rate – above the national average. Conversely, its drivers, inspected 457 times, showed a lower-than-average out-of-service rate. However, the past two years have seen the trucks involved in 12 injury crashes and 18 tow-aways, raising concerns about safety standards.
Revenue and Internal Transactions
Despite the bankruptcy, Nationwide Cargo reported substantial revenues – $9.3 million from January to the filing date, with $40 million in 2023 and $34 million in 2022. The financial dealings also included a $200,000 payment to Five Star Garage, linked to the company’s president, Hristo Angelov. The shareholders, including Angelov, drew $10,000 each in December.
Legal Challenges and Creditors
Nationwide Cargo is currently embroiled in lawsuits in Tennessee, Illinois, and Arizona, adding to its financial woes. The company owes substantial amounts to its largest creditors, with Equify Financial LLC topping the list at over $3.5 million.
Next Steps and Uncertain Future
While a creditors meeting is yet to be scheduled, the trucking industry is closely watching Nationwide Cargo’s bankruptcy proceedings. The outcome will not only affect the company and its employees but also signal potential shifts in the trucking sector.
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