Mutha Trucker, a YouTube news source covering the trucking industry has reported that Montgomery Transport LLC, a Birmingham, Alabama-based trucking company, filed for Chapter 7 bankruptcy and ceased operations effective immediately. 1000 employees out of work as trucker files for bankruptcy
The sudden shutdown has left hundreds of drivers stranded across America as the company’s leadership instructed them to halt operations. This abrupt closure represents a significant disruption in the trucking industry and has created immediate challenges for both drivers and clients dependent on Montgomery’s freight services.
Details of the Bankruptcy Filing
The company officially announced its Chapter 7 bankruptcy filing, which indicates a complete liquidation rather than a reorganization. Unlike Chapter 11 bankruptcy, which allows companies to restructure while continuing operations, Chapter 7 signals the complete cessation of business activities. The announcement came suddenly, with employees receiving notification with almost no advance warning, forcing an immediate operational halt across the company’s network.
Impact on Employees
The bankruptcy has resulted in approximately 1,000 employees losing their jobs, including 600 truck drivers who were actively working on deliveries across the country when the announcement was made. The company has instructed drivers who are close to home to return and await further instructions. Those currently completing deliveries have been told to finish their current loads but not to accept any new assignments. The widespread impact has created an immediate employment crisis for hundreds of families dependent on the company for their livelihoods.
Background of the Company’s Financial Troubles
According to internal communications shared by employees, Montgomery Transport’s financial troubles began unfolding earlier this year. In June 2025, the company’s principal owner, One Equity Partners, reportedly decided to exit the trucking industry and sell the company. By July 2025, P and S Transportation had begun due diligence to purchase Montgomery Transport, with a planned closing date of September 30…