Montgomery Transport, a Birmingham, Alabama–based flatbed carrier, has filed for bankruptcy and halted operations, leaving about 1,000 employees out of work, according to internal communications and court filings described in a FreightWaves report published this week. Drivers were instructed to finish deliveries already in motion and then stand down, with the company indicating payroll would cover work performed prior to the shutdown. ([]())
The abrupt collapse caps weeks of turbulence around an attempted sale that did not close. In statements released Thursday, company founder Rollins Montgomery pushed back on claims that his recent litigation scuttled a rescue deal, saying he hasn’t controlled the business since early 2022 and arguing the carrier’s financial strain stemmed from decisions made after that point. His remarks acknowledge the job losses and express support for affected workers but offer little clarity on what happens next for unpaid vendors and rank‑and‑file employees.
Operational chatter from drivers points to a Chapter 7 liquidation, not a reorganization, suggesting trucks and trailers will be returned or auctioned and that customer freight will be redistributed across competing flatbed networks in the Southeast and Midwest. Multiple driver forums on Thursday and Friday described the stand‑down as immediate, with posters reporting that loads in transit were delivered and equipment parks were told to secure assets. Those accounts line up with details circulating in investor and market briefings that cite roughly 600 company drivers among the displaced workforce.
Why it matters for shippers: Flatbed capacity tied to building products, steel, and heavy industrial freight tends to be localized and relationship‑driven. Even a mid‑sized carrier’s sudden exit can create near‑term friction—longer lead times, re‑tendering of contracted lanes, and spot-market rate wobble on corridors where Montgomery was a frequent bidder. The practical playbook over the next two weeks is straightforward: confirm custody and status of any freight last touched by the carrier; re‑issue routing guides for projects and job sites relying on Montgomery; and ensure lien releases and bills of lading are clean as freight rolls to replacement carriers. ([]())
Why it matters for drivers and staff: Bankruptcies often trigger a scramble for final pay, benefits, and equipment return instructions. Workers should save all dispatch and payroll records, follow written directives on truck disposition, and file wage claims promptly with the bankruptcy court. In prior trucking liquidations, fast movers among drivers and mechanics have landed quickly with regional flatbed fleets and dedicated private carriers that need immediate backfill—an outcome that may repeat here given the timing into the fourth quarter. ([]())
The legal overhang isn’t resolved. Founder Rollins Montgomery’s statement indicates continuing disputes with the company’s owners and partners, a backdrop that could influence any sale of remaining accounts, equipment, or customer contracts from the estate. Those fights won’t keep freight from moving—competitors will—but they can slow creditor recoveries and complicate wage, severance, and PTO claims for former employees.
Big picture: Montgomery’s fall adds yet another data point to an industry still grinding through balance‑sheet cleanup after two years of margin compression. For shippers, the immediate concern is continuity—locking down backup flatbed capacity on construction, manufacturing and project‑cargo lanes. For carriers, the lesson is familiar: thin margins, rising equipment costs, and capital‑intensive growth leave little room for stumbles when a strategic deal falters or cash gets trapped in litigation. ([]())
Sources: FreightWaves, PR Newswire, TruckersReport, FastBull
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