Freon Logistics, a Bakersfield, California-based trucking company, has filed for bankruptcy, and some employees protested recently to demand unpaid wages.
Documents filed Nov. 8 in Eastern District of California U.S. Bankruptcy Court show the company, which according to its website provides truckload, less-than-truckload, intermodal, repair and maintenance and warehousing services, is seeking Chapter 11 protection; the documents were signed by CEO Hardeep Singh.
Freon Logistics employs about 500 people, including truck drivers, administrative personnel and others, according to court records. It’s unclear if Freon’s associated companies — Freon Group, Freon Trucking, Freon Cold Storage or Freon Garage — are impacted by the filing.
On Monday, some employees gathered outside the company’s headquarters to protest, according to local news outlets.
“I have a couple colleagues that haven’t been paid over a good few weeks, even months, two months, I heard the most,” Joel Juarez told local news station KGET. “It’s been for a couple of my colleagues … it’s been over $12,000, $16,000 that have been owed. As for myself, I’m owed $2,000, which is a little bit, but still, I need that money to pay my bills, take care of the stuff at home. You know, I have a family to take care of.”
A TikTok taken at the scene and posted by the account kern_county_activities_ shows a group of disgruntled employees gathering around the Freon Logistics building, with one driver who claims to have worked with the company for four years yelling to a Freon employee or representative: “You don’t care about anyone else. You just care about your own s—, man. This is all you did, man, whatever you’re talking about all this bull—-,” he says.
FreightWaves’ attempts on Wednesday to reach the company and the law firm representing it were unsuccessful.
Some employees told KGET that the company promised to pay workers on Monday but went back on its word, claiming the bank had frozen the company’s accounts.
In a new court filing Monday, the company asked the court to allow it to pay administrative costs and employees.
“It is critical the Debtor be able to continue operations of its business without delays or interruption so that Debtor can reorganize its business and financial affairs as contemplated by Chapter 11,” the filing states.
The bankruptcy filing also says the company expects the business to be profitable while the case is underway.
Bill Prough, a safety manager for Freon, told a reporter with KBAK that financial problems are to blame but that workers will get paid.
“Some of our drivers aren’t getting paid, you know. It’s not that they’re not gonna get paid; they will get paid,” he said. “The income goes down and the cost goes up, and … people don’t understand, the drivers don’t understand.”
KBAK says the Department of Transportation was on scene this week after the agency’s attempts to reach the company were also unsuccessful. FreightWaves has requested a comment from DOT.
A Facebook page and other social media accounts for the company were no longer active as of Wednesday.
Don easler
YOU PAY YOUR FOLKS THAT WORK FOR YOU BEFORE ANYTHING ELSE IT’S NOT THERE FAULT YOU SUCK AT MONEY MANGMENT
Harinder Singh
Bankruptcy name of move behind the scenes different movie. No one broke. That’s how to get rich in overnight. No one broke and run out nothing that’s the scene created by owner help to getover with debit. Another family member will buy company in cheap amount and start moving and rolling again. Some ppl do multiple times until no one left in family to make it happen again. Overnight rich game flip make rich.
Doug Edwards
I was employed with a company that filed chapter 11 after a dispute with the builder of their building. Assets were not frozen and employees got paid because the company hired good lawyers and put a good plan in action with the courts and with the debtors. This planning ahead and using good lawyers avoided assets being frozen. It sounds like the owners of the company do not think of the consequences of their actions.
Michael
It doesn’t matter you pay your driver’s when and what you agreed to pay them. I got screwed for a year straight. By a company long with many other drivers. No retention bonuses like they stated no stop pay no lay over pay zero on duty pay wasn’t offered health insurance had to fix my truck while off duty always forced dispatch taking money from my check and others and giving it back and calling it per diem. Just a joke of a company platinum.
Stephen Webster
In canada this comman practice among foreign ( student) drivers on work permits
This why any company with over 10 trucks needs to have a plan to pay wages and provide medical supplies and care if they are based out of ont or alberta . Too many truck drivers end up homeless and disabled in ont
Kelly Martin
If you don’t have enough money in account you shouldn’t assign loads to drivers they do their job delivering the load common sense would dictate having money to pay your drivers
Terry Wilson
Pay your employees That’s your first obligation
Andre clemons
In California it’s called unfair business practice. Employees trust the company to be able to conduct business according to the law and all business practices. Lawer up an fight for damages and hardship. The company admitted to being able to be profitable so it sounds like greed in my opinion