NY FedEx Contractor Declares Second Bankruptcy in Seven Months
CBS Trucking Inc., of Newburgh, NY, filed a Chapter 11 Petition in U.S. Bankruptcy Court, Poughkeepsie on February 7, 2024.
This comes shortly after CBS initially filed for Chapter 11 bankruptcy protection in June 2023.
CBS intention in its petition is to successfully reorganize its debts and emerge as a profitable residential package delivery service. According to CBS, it experienced a decrease in revenue after it lost one of its FedEx contracts in 2021. This resulted in a default on a $1,163,000 loan issued in 2020 and backed by the U.S. Small Business Administration.
It is not uncommon for FedEx Ground contractors to face severe financial consequences in connection with their business relationship with FedEx Ground. FedEx contractors are advised to seek competent and knowledgeable legal representation to guide them in any legal dispute with FedEx Ground.
For more information about this case:
Westfair Business Journal: Newburgh FedEx contractor declares bankruptcy again
Please Note: Possinger Law Group PLLC did not represent any of the parties involved in the above case.
Possinger Law Group is a boutique law firm dedicated to elite levels of service to small and medium sized businesses and the individuals that own them. Possinger Law Group has been legal counsel for FedEx Ground contractors and advised law firms representing contractors against FedEx Ground. When faced with serious problems, clients have reached out to Possinger Law Group to be a trusted advisor and advocate to be a guide through high conflict situations and complex legal challenges. In litigation matters, Possinger Law Group works with its clients to effectively resolve disputes, and when necessary, by being fiercely aggressive in litigation.