On October 8, 2025, a major U.S. trucking giant filed for Chapter 7 bankruptcy, halting all operations and leaving roughly 1,000 employees without work. About 600 drivers nationwide were stranded with loaded trailers and no new dispatches.
“This is the largest trucking bankruptcy of the year — 1,000 employees out of work,” said Craig Fuller, CEO of FreightWaves, on X. The collapse followed a failed acquisition blocked by a restraining order the previous month.
As terminals went dark and paychecks stalled, the sudden shutdown sent shockwaves through the freight industry. The question loomed large—what sent one of America’s biggest flatbed carriers crashing to a halt so fast?
Terminals Went Dark Overnight
The company’s Birmingham headquarters went silent overnight as all systems shut down. Around 1,000 employees lost access to payroll and company platforms within hours.
Many drivers didn’t hear from management at all, instead learning of the shutdown through social media and trucking forums. In an instant, the company’s communication lines—and its operations—went dark.
The Sale That Slipped Away
Hopes for a rescue had been rising. Negotiations began in July 2025 for P&S Transportation to purchase the trucking giant, with the deal expected to close by September 30. As one of the nation’s top flatbed carriers, P&S’s acquisition was seen as the company’s lifeline.
But just days before closing, the deal fell apart—leaving employees, creditors, and customers scrambling for answers.
Lawsuit Freezes the Deal
Four days before the planned sale, founder Rollins Montgomery filed a lawsuit and obtained a restraining order that froze the P&S acquisition. Legal entanglements, including other ongoing cases, added to the mounting pressure.
With creditor confidence crumbling and restructuring efforts faltering, Montgomery Transport’s hopes for survival vanished almost overnight.
Montgomery Transport: The Fallen Giant
Montgomery Transport, a Birmingham-based carrier specializing in over-dimensional freight, officially filed for Chapter 7 bankruptcy on October 8, 2025.
Owned by One Equity Partners since 2022, the company struggled with weak freight rates, high operating costs, and aging trucks. The filing marked the end of a once-prominent Alabama freight firm that had operated a fleet of more than 600 trucks nationwide.
Drivers Left Holding the Load
When the shutdown hit, hundreds of drivers were stranded with loaded trailers and no instructions. Some were far from home, unsure whether to continue hauling or abandon their rigs altogether.
For many, paychecks stopped instantly—leaving families suddenly without income or clarity on what came next.
Freight Stalled, Projects Frozen
As Montgomery’s operations ceased, shipments froze mid-transit across the Southeast. Industrial materials sat idle in truck yards and along highways, delaying construction timelines and manufacturing supply chains.
The ripple effects reached infrastructure projects already strained by slow freight recovery.
Double Billing Threat Looms Large
The bankruptcy also raised fears of “double billing.” Customers who prepaid for shipments might now have to pay again to reclaim their goods—a scenario reminiscent of the 2023 Mitchell Gold + Bob Williams collapse, where clients paid twice for furniture deliveries.
Without funding to complete shipments, businesses may face costly recoveries as cargo sits in legal limbo.
Creditors’ Swift Collapse
Montgomery initially planned a Chapter 11 reorganization with P&S as the lead bidder, but creditor negotiations broke down on October 8. By the next day, the case had converted to Chapter 7 liquidation.
Lenders prioritized asset recovery over payroll funding, accelerating the shutdown and leaving workers behind.
The Lawsuit That Killed 1,000 Jobs
The lawsuit filed by Rollins Montgomery on September 26 voided a key clause in the purchase agreement, derailing the P&S sale just before completion. The fallout was devastating—hundreds of employees instantly out of work.
Montgomery later stated, “I would never take steps that would intentionally harm the company I built.” But by then, the damage was irreversible.
Private Equity’s Exit from Trucking
One Equity Partners acquired Montgomery in 2022 as part of a broader strategy to consolidate flatbed carriers. By mid-2025, falling freight rates and rising maintenance costs prompted the firm to exit the investment.
The failed divestment now stands as another sign of private equity’s uneasy relationship with America’s volatile trucking sector.
Drivers Under Financial Siege
Among the stranded were both company drivers and owner-operators leasing their trucks. With routes frozen, owner-operators still faced payments on idle vehicles.
Industry leaders warn the closure is part of a broader trend—more than a dozen large carriers have filed for bankruptcy in recent months, signaling deeper instability in the freight market.
Birmingham’s Economic Blow
Montgomery’s sudden closure wiped out close to 1,000 jobs across drivers, dispatchers, mechanics, and office staff. The impact extends well beyond logistics, disrupting supply chains and tightening job markets across Alabama’s industrial corridor.
Local economies that relied on the company’s operations are now bracing for ripple effects.
Competitors Move Fast to Recruit
Within hours of the shutdown, Alabama-based carriers launched driver recruitment campaigns, posting job openings across social media and trucking boards.
While experienced drivers are being absorbed by competitors, many office workers and maintenance staff face limited options in an already crowded job market.
Bankruptcy Court’s Limits on Freight
Under Chapter 7 liquidation, there’s no funding to complete in-transit shipments. Shippers become unsecured creditors, often forced to fight in court to retrieve their goods.
Without debtor-in-possession financing, stranded freight remains trapped in legal uncertainty—an all-too-common outcome in rapid bankruptcies.
Why Flatbed Freight Fell First
Flatbed carriers have been among the hardest hit in 2025’s freight recession. Montgomery’s aging fleet and rising repair costs made it increasingly difficult to compete.
Unlike dry van or refrigerated freight, flatbed operations rely heavily on construction and manufacturing demand—both sectors that weakened throughout the year.
Time-Sensitive Cargo Concerns
As bankruptcy proceedings unfold, time-sensitive shipments face growing risk. Perishable and critical cargo may spoil or miss deadlines before ownership and liability are resolved.
Each passing day compounds financial losses for shippers and widens the disruption across supply networks.
Will Workers See Their Pay?
Montgomery pledged to pay employees for completed work, but under Chapter 7, wage claims fall behind secured creditors. Labor officials warn that most workers may recover only a fraction of what they’re owed.
For many families, those unpaid wages represent more than lost income—they mark the end of financial security built over years on the road.
A Blueprint for Rapid Liquidations
Montgomery’s abrupt pivot from a planned reorganization to full liquidation offers a stark blueprint for how quickly trucking companies can collapse when financing fails.
Bankruptcy experts caution that creditors often prioritize asset recovery over worker protections, accelerating closures while deepening the human toll.
The Empty Roads Ahead
With Montgomery Transport’s trucks off the highways, a decade-long operation comes to an end. The disappearance of such a major carrier reduces flatbed capacity across the Southeast and leaves lasting scars on the industry.
As the freight recession grinds on, insiders warn that Montgomery’s fall may not be the last—and the road ahead for America’s trucking workforce remains uncertain.