Two Trucking Companies and a CDL School File for Bankruptcy

A few more bankruptcies have hit the freight industry. Here’s a look at what’s happening with Patriot Transport, Expeditor Systems, and Toro Trucking Academy.

Illinois Trucking Companies File for Chapter 11

Two Illinois-based trucking companies, Patriot Transport and Expeditor Systems, have filed for Chapter 11 bankruptcy protection. Both companies aim to reorganize under the leadership of Igor Terletsky.

Patriot Transport:

• Assets: Between $1 million and $10 million
• Liabilities: Between $10 million and $50 million
• Top Creditors: IRS ($692,000), Wesco Insurance ($628,000), Prologis 2 L.P. ($596,000)
• Fleet: 35 power units, 35 drivers
• Inspections: 10 times, with a 30% out-of-service rate

Expeditor Systems:

• Assets and Liabilities: Between $1 million and $10 million
• Top Creditors: RTS Financial Services ($163,000), Chase Ink ($136,000), IRS ($80,000)
• Fleet: Initially 100 power units and drivers, reduced to 50 power units and 55 drivers after filing
• Inspections: 70 times, with a 22.9% out-of-service rate

Both companies have faced operational challenges, leading to their current financial struggles.

CDL Truck Driving School Closes Doors

Toro Trucking Academy, a CDL training school in the Pacific Northwest, has also shut down and filed for Chapter 7 bankruptcy. Blaming market forces and increasing operational costs, the school ceased operations after over a decade of training professional drivers.

Toro Trucking Academy:

• Assets: Between $100,000 and $500,000
• Liabilities: Between $1 million and $10 million
• Top Creditors: Bank of America ($68,000), Chase Card Services ($57,000)
• Fleet: 13 power units, 11 drivers at closure
• Revenue: $490,000 in 2024, $1.7 million in 2023, $2.3 million in 2022

The academy ensured all students completed their training before closing.

What Happened?

Patriot Transport and Expeditor Systems: Both companies cited a need to reorganize their debts and operations.

Toro Trucking Academy: The academy blamed "market forces," including rising fuel prices, increasing regulations, and higher personnel costs, for its closure. They also said operating in business-unfriendly states like Washington and Oregon added to their challenges.

Sources: FreightWaves (Trucking Companies) | FreightWaves (CDL School)