Losses Force OTR Express to Cease Operations

OTR Express (OTR) said Wednesday that it will cease operations within 60 days because of adverse business conditions, including a difficult freight market, declining used truck values and high fuel and insurance costs.

Based in Olathe, Kan., OTR Express is a nationwide dry van truckload carrier and logistics company.

“In spite of some positive impact from restructured loan payments and our recent fleet and staff downsizing, we can no longer foresee a successful outcome in this environment,” said William Ward, chief executive officer.

The company said it lacks adequate capital to execute its business plan, and does not see any way to be profitable in the foreseeable future.

The company reported losses of almost $7 million for fiscal year 2000, following a $892,000 loss in 1999.

In addition, last month the company warned that it expected to report a significant loss for the first quarter of 2001 (See Executive Briefing, April 13).

OTR said it will continue pickup and delivery of loads for customers until further notice. It also plans to still hold its annual meeting of stockholders on May 14.

(Click here for the full press release.)

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