A California-based third-party logistics company, which had 34 power units and 33 drivers, filed for bankruptcy liquidation on Thursday.
Wise Choice Trans. Corp., headquartered in Hayward, California, filed its petition in the U.S. Bankruptcy Court for the Northern District of California.
The 3PL, which was founded in 2009, offered final mile, less-than-truckload and full truckload services in the San Francisco Bay area. Wise Choice also provided warehouse and fulfillment services before shuttering operations.
Wise Choice listed its assets and liabilities as between $1 million and $10 million, according to the petition. It stated that it has up to 49 creditors and maintains that no funds will be available for unsecured creditors once it pays administrative fees. Erick Crespo is listed as the CEO of the trucking firm. He has also filed for personal bankruptcy protection, according to the petition.
As of publication, Crespo’s attorney, Stephen D. Finestone, did not respond to FreightWaves’ request for comment.
The trucking company’s top secured creditor is Fremont Bank of Livermore, California, which is owed more than $1.3 million for more than 20 Freightliner tractors and other equipment. The petition states that Propella Capital LLC of Brooklyn, New York, is the largest unsecured creditor and is owed $100,000.
In its petition, Wise Choice posted gross revenues of around $3.6 million in 2023, a drop of around $600,000 compared to its revenues of $4.2 million in 2022.
Over the past 24 months, Wise Choice’s trucks had been inspected 94 times, and five had been placed out of service for a 5.3% out-of-service rate. That is significantly lower than the industry’s national average of around 22%, according to the Federal Motor Carrier Safety Administration’s SAFER site.
The company’s drivers had been inspected 106 times, and two were placed out of service over a two-year period, resulting in a 2% out-of-service rate. The national average for drivers is about 6.7%, according to FMCSA data. The company’s insurance was canceled on Jan. 5.
In the petition, Wise Choice lists its involvement in four legal actions that are ongoing or have been concluded in San Francisco Superior Court and in Santa Clara Superior Court, although no amounts were listed.
A creditor’s meeting has been set for Jan. 31.
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DITTO
This is too bad. Another well-run company shuttered, I’m presuming, by the insane environmental and work laws passed by the CA legislature and various state and local governmental organizations. They should have moved to AZ or NM a few years back – all trucking companies should – and never take one iota of freight across the CA border. Let the government nits pick up their toilet paper, food, gasoline, etc.etc. in the desert with their electric trucks that they won’t be able to charge when the electricity runs out
Matt
Love the business advice not to serve 40 million Californians. Our regs aren’t perfect but not making money in California is the dumbest advice I’ve heard in a long time
Clay Dawg
No matter what contract you think you hav, someone always figuring how too cut your throat……iz what it iz!! Just Sayin..R.I.P.
Gary Holfstra
This is too bad. Another well-run company shuttered, I’m presuming, by the insane environmental and work laws passed by the CA legislature and various state and local governmental organizations. They should have moved to AZ or NM a few years back – all trucking companies should – and never take one iota of freight across the CA border. Let the government nits pick up their toilet paper, food, gasoline, etc.etc. in the desert with their electric trucks that they won’t be able to charge when the electricity runs out.