Allied Holdings Files for Chapter 11 Bankruptcy

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uto hauler Allied Holdings said Monday it has filed for Chapter 11 bankruptcy protection.

The trucking company said in a statement it has been hit by high labor and fuel costs, high debt and decreasing volume from U.S. automakers.

The filings were made in the U.S. Bankruptcy Court for the Northern District of Georgia.

“Our objective is to use this process to redesign our capital structure in order to lower our debt, reduce the multi-year cost increases associated with our contract with our Teamster-represented employees, address certain customer pricing issues and take steps to improve our financial performance,” Hugh Sawyer, Allied’s Chief Executive Officer, said in a statement released Monday.

Allied carries more than 9 million new and used vehicles a year from plants and rail and shipping hubs to auto dealers. It has a truck fleet of more than 4,000 trucks dispatched from about 90 terminals in the United States and Canada.

Allied reported a first-quarter loss of $10.1 million and in late June filed for the company’s voluntary delisting from the American Stock Exchange.

Allied is ranked No. 25 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.

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