A week ago, trucking giant Celadon lost over 60% of its stock value in 1 day due to suspicions of accounting errors in the company’s financial statements.
Now, Celadon has announced plans to shut down its terminal in Nash County, North Carolina by the 30th of June and has already notified 127 employees that they will soon be laid off.
Celadon has had a tumultuous week as their shares plummeted to near record lows and their executive positions shuffled. To make matters worse, they also reported a $10 million dollar operating loss in the first quarter of 2017.
Celadon claims that the operating loss was due to irregular freight routes and the company states that they plan to begin employing more company drivers and fewer owner-operators.
The company is currently facing several other affronts to its legitimacy.
The company is currently facing a class-action lawsuit for allegedly violating securities laws by making false/misleading statements to investors. In addition, the NYSE is threatening to delist Celadon due to filing delinquencies after an independent auditor retracted 6 quarters of earnings reports.
The company will have 6 months to reissue the 6 quarterly reports before being delisted from the stock exchange, which they claim they will be able to do within the allotted time frame.
“The Company believes that it will continue to be listed on the NYSE,” a Celadon press release stated.