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.
However, on September 26, a lawsuit and restraining order filed by Rollins Montgomery reportedly halted the sale process. With the traditional purchase agreement derailed, the company attempted to proceed with the sale through Chapter 11 bankruptcy proceedings. By October 8, the situation deteriorated further when creditors failed to reach consensus terms, forcing the company to convert to Chapter 7 bankruptcy and shut down operations completely.
Financial Provisions for Affected Employees
In its communication to drivers, Montgomery Transport has stated that payroll is being protected for work already performed. Drivers currently delivering loads have been instructed to complete those deliveries with assurances they will be compensated. The company directed drivers near the Birmingham terminal to return there, while those closer to their homes were told to return home and await further instructions. Despite these provisions, the sudden closure leaves significant uncertainty regarding final payments, benefits, and other employment-related matters.
Emotional Impact and Community Response
The announcement has had a profound emotional impact on employees. One employee shared: “It’s an emotional day as Montgomery Transport is out of business effective immediately, asking for prayers as hundreds of drivers and office employees are now without a job today.” Another stated: “I poured my heart and soul into that company. I love the truck industry. I love my truck driver buddies. I’m sorry, and I’m heartbroken.”
The trucking community has responded quickly, with competing carriers reaching out to displaced drivers with employment opportunities. Several companies have specifically directed their recruiting departments to contact former Montgomery Transport drivers, recognizing the skilled workforce suddenly available in the market.
The sudden closure of Montgomery Transport represents not only a business failure but a significant disruption for hundreds of families. While truck drivers may find new opportunities due to their specialized skills, office staff and support personnel face a more challenging job market. The collapse highlights the fragility of transportation companies in today’s economy and the ripple effects when such operations cease. As the situation continues to develop, the focus remains on supporting the displaced workers while the legal and financial aftermath of the bankruptcy unfolds in the weeks ahead.
