The bankruptcy filing of New England Motor Freight (NEMF) and the subsequent “wind down” of its operations is beginning to be felt.
In February, Elizabeth, NJ-based NEMF announced it was filing for bankruptcy as a result of following “two years of losses, and with continuing and unsustainable rises in overhead as well as a severe shortage of drivers,” according to Vincent Colistra, senior managing director at Phoenix Management Services and chief restructuring officer for the trucking company.
Now, as the company begins with process of closing its operations, job losses are beginning to be felt.
New England Motor Freight (NEMF), which filed for bankruptcy in February, has closed its Meriden trucking terminal, resulting in the loss of 122 local jobs, according to a state Department of Labor filing.
The New Jersey-based company, which was one of the nation’s largest truckload carriers, closed its 475 Research Parkway terminal on March 1 after laying off 122 workers in the two weeks prior, it said in a WARN notice filed with the labor department.
About 67 employees were represented by the International Association of Machinists and Aerospace Workers, AFL-CIO Local 447 of District 15, the company said.
“The Elizabeth, N.J.-based company has been in business since 1918 and is headed by Myron Shevell, a local trucking operator who bought the business from Farmland Dairies in 1977,” reported Transport Topics in February.
The trucker is the biggest LTL carrier to shut down since CF Motor Freight closed its doors in 2002, when it ranked No. 3 on Transport Topics’ list of the largest for-hire carriers in the LTL sector.
“The company did business with many large retailers and that, according to several industry observers, may have contributed to its demise,” Transport Topics noted.