AGX Freight Group has indefinitely suspended operations, citing a dispute with a senior secured lender that restricted its access to working capital.
The Jacksonville, Florida-based freight brokerage and logistics provider said the lender dispute prevented the company from accessing funds needed to support day-to-day operations and forced it to halt business, with all current operations expected to close by Jan. 31.
“AGX FREIGHT is not in default, and we categorically disagree with the lender’s position as it relates to the Company,” Mike Williams, president of AGX Freight, said in a news release issued on Tuesday. “We have sufficient working capital on our balance sheet to fund operations, pay employees, agents, and carriers, and continue delivering value for our customers. The issue is not liquidity — it is accessibility.”
The company said it had spent weeks pursuing interim financing, new capital and an ownership restructuring that would have allowed it to continue operating while the dispute was resolved, but those efforts ultimately failed to prevent the shutdown.
Founded in 2016, AGX Freight grew into a full-service logistics and transportation platform offering truckload, less-than-truckload, intermodal and specialized freight services, according to its public company profile.
Prior to the shutdown, the company reported up to 50 employees, according to LinkedIn.
Carrier concerns emerge after shutdown
Since the suspension was announced, some carriers and logistics partners have posted across industry forums and social media seeking clarity about outstanding invoices and next steps following the abrupt halt in operations.
Industry fraud-monitoring groups have separately warned that broker shutdowns are often followed by impersonation attempts, urging carriers to verify load tenders, payment requests and email domains referencing AGX Freight Group.
