Shuttered California trucking company files for bankruptcy
A California-based drayage company, which shuttered operations in November after its operating authority was involuntarily revoked, recently filed for bankruptcy liquidation.
Central California Cartage Co. Inc., headquartered in Goshen, filed its petition in the U.S. Bankruptcy Court for the Eastern District of California on Tuesday.
At the time of its closing, the company had 25 power units and 32 drivers. No reason was given as to why the company was forced to shut down.
Central California Cartage, which was founded in 2019, hauled general freight before closing operations after its common and contract authority were revoked by the Federal Motor Carrier Safety Administration in November.
The company listed its assets as up to $50,000 and its liabilities as between $1 million and $10 million, according to the petition seeking Chapter 7 bankruptcy. It stated that it has up to 49 creditors and that no funds will be available for unsecured creditors once it pays administrative fees.
James Sigler is listed as the shareholder, director and president of the now-defunct trucking firm. Other shareholders listed in the petition include Julia Sigler and Jose Martinez.
As of publication, the company’s bankruptcy attorney, Peter Fear, had not responded to FreightWaves’ request for comment.
The company’s top creditors with nonpriority unsecured claims include Ryder Transportation Services of Chicago, which is owed more than $2.5 million; XTRA Lease of St. Louis, which is owed more than $805,000; and Valley Pacific Petroleum Services of French Camp, California, which is owed around $319,000, according to the petition.
In its petition, Central California Cartage posted gross revenues of nearly $5.8 million in 2023, a drop of around $3.8 million compared to its revenues of $9.6 million in 2022. The company did not operate in 2024.
According to FMCSA’s SAFER website, the agency granted Central California Cartage’s contract and common carrier authority in April 2019, but its operating authority was involuntarily revoked in November.
Prior to its closure, the company’s trucks had been inspected 110 times, and 28 had been placed out of service for a 25.5% out-of-service rate over the preceding 24-month period. That is higher than the industry’s national average of around 22.3%, according to FMCSA data.
The company’s drivers had been inspected 156 times, and three were placed out of service over a two-year period, resulting in a nearly 2% out-of-service rate. The national average for drivers is about 6.7%.
In the petition, Central California Cartage lists its involvement in a collections legal action filed by one of its creditors, Valley Pacific Petroleum in Tulare County Superior Court.
A creditors meeting has been set for April 22.
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