Celadon Group has sold its flatbed division to Alabama-based PS Logistics LLC, stating that they did not have the “expertise” to compete in the flatbed sector.

The transaction was announced on Monday, September 18th.

According to a Celadon press release, Celadon has sold its flatbed division in an attempt to regain its position as a major trucking provider.

“Our new management team determined that we had neither the expertise nor the critical mass to compete in the flatbed sector,” said Celadon’s new CEO, Paul Svindland, who was hired last month.

“Accordingly, we were pleased to offer our people and customers a good home with one of the largest and most successful flatbed operators in the U.S.,” he added.

“We are proud to welcome Celadon’s flatbed division to the PS Logistics family. We look forward to working with their great flatbed drivers and operations group,” added Scott Smith, CEO of PS Logistics.

“The transaction consisted primarily of leased and owned trailers, which were sold in exchange for an assumption or satisfaction of the lease obligations and cash, respectively,” the press release stated.

2017 has been a rough year for Celadon. In the spring, the company was accused of accounting fraud, inspiring a class action lawsuit. The accusations cut Celadon’s stock values in half in just one day, and the New York Stock Exchange briefly threatened to delist them. Amidst all the chaos, the president of Celadon, as well as several other executives, left their positions and 127 employees had to be laid off.

Now though, Celadon looks forward to focusing their efforts on an “intense improvement phase with multiple initiatives.”

“Under the strategic plan adopted over the past 30 days, our goal is to concentrate our resources on core business lines where we add value to customers and have the opportunity to generate acceptable returns over time. In our portfolio of companies, several are high performers with steady business levels and cash flow, and include dedicated, warehousing and logistics, regional, and other value-added services,” Svindland said.

“Our historical Celadon irregular route NAFTA-focused truckload business has had a difficult year from a profitability perspective,” admitted Svindland.

“But [Celadon] offers a strong niche with longstanding customer relationships,” he added.