The Nashville-based company did not respond to a request for comment.
Formerly YRC freight, Yellow is a less-than-truckload shipper, which transports relatively small loads. It is the third-largest company in this category, having delivered more than 14 million shipments in 2022.
Earlier this month, the union and the company averted a strike tied to health-care benefits, yet the threat spooked customers and prompted a significant drop in business. That came as a blow to the company, which has not been able to refinance $1.3 billion in debt set to mature in 2024.
The shutdown comes three years after the Trump administration gave the company a $700 million covid-relief loan, which a congressional report released in June said had been the result of “missteps.” That investigation found that the Treasury and Defense departments did not properly justify that Yellow qualified for the loan for national security reasons.
The “news is unfortunate but not surprising,” Teamsters General President Sean M. O’Brien said in a statement Sunday. “Yellow has historically proven that it could not manage itself despite billions of dollars in worker concessions and hundreds of millions in bailout funding from the federal government.”
This is a developing story and will be updated.