Mutha Trucker, a YouTube news outlet focused on the trucking sector, has reported that Montgomery Transport LLC, a trucking firm based in Birmingham, Alabama, has filed for Chapter 7 bankruptcy and has immediately shut down operations, leaving 1,000 employees without jobs.
This unexpected closure has stranded hundreds of drivers across the nation, as company leadership instructed them to stop their operations. This abrupt termination of activities poses significant challenges not only for the drivers but also for clients reliant on Montgomery’s freight services.
Bankruptcy Filing Details
The company confirmed its Chapter 7 bankruptcy filing, which signifies complete liquidation rather than restructuring. Unlike Chapter 11, which allows businesses to reorganize while continuing operations, Chapter 7 indicates a total cessation of activities. The announcement came with little warning, leaving employees in the dark and mandating an immediate halt to all company operations.
Effect on Employees
The bankruptcy has led to approximately 1,000 employees losing their jobs, including 600 truck drivers who were actively involved in deliveries at the time of the announcement. The company has instructed drivers close to home to return and wait for further instructions, while those completing deliveries can finish their current loads but are prohibited from taking on new assignments. This widespread impact has created an urgent employment crisis for many families who relied on the company for their income.
Company’s Financial Troubles Background
Internal communications indicate that Montgomery Transport’s financial issues began earlier this year. In June 2025, the company’s primary owner, One Equity Partners, reportedly decided to exit the trucking sector and put the company up for sale. By July, P and S Transportation initiated due diligence to acquire Montgomery Transport, with a projected closing date of September 30.
However, a lawsuit and restraining order filed by Rollins Montgomery on September 26 disrupted the sale process. As a result, the company attempted to navigate the sale through Chapter 11 bankruptcy proceedings. But by October 8, complications arose as creditors could not reach an agreement, forcing the company to switch to Chapter 7 bankruptcy and completely shut down.
Financial Provisions for Affected Workers
In its communications, Montgomery Transport assured drivers that payroll will be honored for completed work. Drivers actively delivering loads have been instructed to finish their deliveries, with guarantees they will be paid. While drivers near the Birmingham terminal have been asked to return there, those closer to home should head back and wait for further guidance. Despite these reassurances, the sudden closure has led to considerable uncertainty regarding final payments, benefits, and other employment-related issues.
Emotional Impact and Community Response
The announcement has had a deep emotional effect on employees. One team member expressed, “It’s a tough day as Montgomery Transport has shut down, and I’m asking for prayers for the hundreds of drivers and office workers left jobless.” Another shared, “I dedicated so much to this company. I love the trucking industry and my fellow drivers. I’m devastated.”
The trucking community has quickly rallied, with competing firms reaching out to displaced drivers regarding job opportunities. Many companies have instructed their recruitment divisions to seek out former Montgomery Transport drivers, acknowledging the skilled workforce now available in the job market.
The unexpected closure of Montgomery Transport represents not merely a business failure, but a significant upheaval for countless families. While truck drivers may find new positions due to their specialized skills, office staff and support personnel could face a more difficult job market. This incident underscores the vulnerability of transportation companies in the current economic landscape and the extensive repercussions when operations stop. As developments arise, the focus will remain on supporting the displaced workers as the legal and financial aftermath of the bankruptcy unfolds in the coming weeks.
