Kansas: Major Trucking Company Closes, 1000 lose jobs--fuel costs cited

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Kansas: Major Trucking Company Closes, 1000 lose jobs--Fuel costs cited

Holding company shuts down Crouse Cartage Co.

By RANDOLPH HEASTER - The Kansas City Star

Date: 09/18/00 22:15

TransFinancial Holdings Inc. says it has closed the trucking operations of Crouse Cartage Co., its biggest subsidiary.

The closing, which occurred Saturday, will lead to the layoffs of about 1,000 union and nonunion employees systemwide, TransFinancial President Tim O'Neil said. About 60 employees at Crouse's Kansas City terminal will be affected.

TransFinancial, a Lenexa holding company, will continue to operate Specialized Transport Inc., a smaller trucking subsidiary, and Universal Premium Acceptance Corp., an insurance premium financing company.

Crouse said it had made arrangements to deliver all the freight currently in its system. The company also will form an advisory committee of unsecured creditors to help Crouse management liquidate its assets and pay claims.

The shutdown will force TransFinancial to take a one-time charge of $21 million.

Crouse's operations were closed because of ongoing losses, O'Neil said.

The price of diesel fuel recently has hovered around an all-time high, leading to speculation that many trucking companies will soon fail.

Crouse had about 800 union and 200 nonunion employees, primarily in 17 Midwestern states. The company has not made any decisions regarding severance packages for the employees, O'Neil said.

TransFinancial will continue to employ about 300 people, including 250 with Specialized Transport, O'Neil said. TransFinancial's stock dropped 1 cent and closed at 50 cents a share in trading Monday on the American Stock Exchange.

Crouse generated most of TransFinancial's revenue. For the second quarter, $37.4 million of TransFinancial's $38.8 million in total revenue came from its transportation units.

To contact Randolph Heaster, call (816) 234-4746 or send e-mail to rheaster@kcstar.com.

http://www.kcstar.com/item/pages/business.pat,business/3774c4d2.918,.html

-- Carl Jenkins (Somewherepress@aol.com), September 19, 2000


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