LTL-Giant New England Motor Freight Shutting Down and Taking 1,500 Driver Jobs With It
Elizabeth, NJ – In a shocking announcement, giant less-than-load (LTL) carrier New England Motor Freight (NEMF) voluntarily filed for Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of New Jersey in Newark.
The company said it intends to use the Chapter 11 filing to facilitate an “orderly wind-down of its operations.”
“We have worked hard to explore options for NEMF, but the macro-economic factors confronting this industry are significant,” said Vincent Colistra, who served as the company’s Chief Restructuring Officer.
NEMF was founded in 1977 and had terminals in the Northeast, Mid-Atlantic and Canada.
According to data from the Federal Motor Carrier Safety Administration (FMCSA), NEMF employed 1,472 drivers and owned 1,263 power units.
Along with being the 19th largest LTL carrier in the United States, the company is known for being run by the father-in-law of international music sensation, Paul McCartney.
McCartney’s father-in-law, Myron Shevell, served as the Chairman of The Shevell Group of Companies, which included companies like NEMF, Carrier Logistics, Eastern Freight Ways, Phoenix Motor Express, Apex Transportation, JANS, New England World Transport and NEMF of Canada.
In Shevell’s career, he received numerous accolades, such as being named “Master Entrepreneur” in the Ernst & Young Entrepreneur of the Year Awards in 1999.
McCartney’s wife, Nancy Shevell, served in various roles at NEMF, and most recently as the company’s Vice President.
All of the companies under The Shevell Group were impacted by the bankruptcy filing.
Monday’s announcement marks the largest trucking bankruptcy since 2002, when Consolidated Freightways Corporation (CFC) abruptly ceased operations on September 3, 2002.
CFC eventually re-branded as Con-way, Inc. in April 2006 and remained in business until it was acquired by XPO Logistics in October 2015.
This is a developing story.
Photo courtesy NEMF
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