birmingham al, October 12, 2025
News Summary
Montgomery Transport LLC, based in Birmingham, has filed for Chapter 7 bankruptcy, leading to the immediate loss of approximately 1,000 jobs, including around 600 truck drivers. The company’s plans for a sale to P&S Transportation were derailed by a lawsuit, leading to the abrupt cessation of operations. Employees face uncertain futures as competitors offer new job opportunities amidst a challenging trucking industry landscape marked by rising bankruptcies.
Montgomery, Alabama — Montgomery Transport LLC Files for Chapter 7 Bankruptcy
Birmingham-based Montgomery Transport LLC officially filed for Chapter 7 bankruptcy on October 8, 2023, resulting in an immediate cessation of all operations and leaving approximately 1,000 employees jobless, including around 600 active truck drivers. This abrupt shutdown has raised serious concerns among workers regarding their future employment prospects.
The company was in the process of being sold to P&S Transportation, a unit of PS Logistics, with hopes of finalizing the deal by September 30, 2025. However, just days before the expected closing, a lawsuit filed on September 26 reportedly derailed the sale process. Following the failed sale, Montgomery Transport sought to file for Chapter 11 bankruptcy in order to reorganize and facilitate the sale, but when creditors could not agree on terms, the company opted for Chapter 7 bankruptcy, which involves total asset liquidation.
Employees and drivers received little notice regarding the impending shutdown, resulting in significant disruption and uncertainty. Despite the chaos, internal communications from the company assured employees that payroll for work already performed would be protected. Truck drivers instructed to finish their current deliveries were advised against accepting new assignments.
In the wake of the shutdown, competing trucking companies have begun reaching out to former Montgomery Transport employees, offering job opportunities to those suddenly left without work. The emotional impact on employees is palpable, with many expressing feelings of heartbreak and uncertainty about their next steps.
Background on Montgomery Transport
Montgomery Transport’s financial troubles began earlier in 2023, leading its principal owner, One Equity Partners, to plan an exit from the trucking industry. Founded in 2011, Montgomery Transport operated several brands including MT Dedicated and RM Logistics. The situation at the company reflects a larger trend within the trucking industry, as recent reports indicate that there have been 17 bankruptcies of carriers with over 250 tractors in the last quarter alone.
Industry Trends
The abrupt closure of Montgomery Transport highlights ongoing challenges faced by the trucking industry, as fluctuating demands, regulatory shifts, and economic pressures lead to an increasing number of carriers filing for bankruptcy. As the industry grapples with these issues, employees and their families are left to navigate the fallout from this alarming trend.
FAQ
When did Montgomery Transport file for bankruptcy?
Montgomery Transport LLC filed for Chapter 7 bankruptcy on October 8, 2023.
How many employees lost their jobs due to the bankruptcy?
Approximately 1,000 employees, including around 600 active truck drivers, have lost their jobs due to the bankruptcy.
What caused the bankruptcy filing?
A lawsuit filed on September 26 reportedly derailed the sale process of the company, leading to the filing for Chapter 7 bankruptcy.
What type of bankruptcy did Montgomery Transport initially seek?
After the failed sale, Montgomery Transport initially sought to file for Chapter 11 bankruptcy to allow for reorganization.
How many bankruptcies were reported in the trucking industry recently?
Recent reports indicate 17 bankruptcies of carriers with over 250 tractors in the last quarter alone.
Key Features Overview
| Feature | Details |
|---|---|
| Bankruptcy Filed | Chapter 7 Bankruptcy on October 8, 2023 |
| Job Losses | Approximately 1,000 employees |
| Active Truck Drivers | About 600 |
| Failed Sale | P&S Transportation acquisition derailed by lawsuit |
| Previous Bankruptcy Filing | Initially sought Chapter 11 bankruptcy |
| Industry Trends | 17 bankruptcies in last quarter for carriers with over 250 tractors |
Deeper Dive: News & Info About This Topic
HERE Resources
Additional Resources
- AL.com: Alabama Trucking Company Files Chapter 7 Bankruptcy
- Transport Topics: Montgomery Transport Shutters
- FreightWaves: 1000 Employees Out of Work as Trucker Files for Bankruptcy
- Wikipedia: Bankruptcy
- Google Search: Trucking Industry Trends 2025
Author: STAFF HERE BIRMINGHAM WRITER
The BIRMINGHAM STAFF WRITER represents the experienced team at HEREBirmingham.com, your go-to source for actionable local news and information in Birmingham, Jefferson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Sidewalk Film Festival, Sloss Music & Arts Festival, Magic City Classic, and civil rights commemorations. Our coverage extends to key organizations like the Birmingham Business Alliance and the Birmingham Civil Rights Institute, plus leading businesses in healthcare, finance, and manufacturing that power the local economy such as UAB Medicine, Regions Bank, and Encompass Health. As part of the broader HERE network, including HEREHuntsville.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.
