LandAir, the trucking company with facilities in Williston and Windsor that closed unexpectedly earlier this month, has filed for Chapter 7 bankruptcy, which means it will not be reorganized, but will be liquidated.
The company has about $3 million in assets and about $43 million in debt, according to documents filed in federal bankruptcy court in Massachusetts, where LandAir is based. Only two creditors have secured claims — Banc of California for $5 million and Corbel Capital Partners, the Los Angeles-based private investment firm that owned the trucking company, for nearly $34 million.
There are hundreds of unsecured creditors across the country, including many Vermont businesses. The Vermont companies that owed the largest amounts are:
- Eden Ice Cider, Newport: $4,996
- Foley Brothers Brewing, Brandon: $2,201
- Hagan Associates, Essex Junction: $9,357
- Lucky’s Vermont, South Royalton: $36,762
- MacKay Towing and Recovery, Lüneburg: $1,435
- Primmer, Piper, Eggleston & PC Cramer, Burlington: $51,511
- The Old Mill, North Troy: $6,511
Additionally, brothers Thomas and William Spencer, whose father Fred founded what would become LandAir in Burlington in 1968 as Allied Air Freight, each owe $137,500 following a lawsuit. The brothers’ lawyer declined to comment.
Court documents also showed that LandAir’s facilities in Vermont, along with eight other sites in New York, Maine, New Hampshire and Massachusetts, are listed as “property requiring immediate attention”, due to hazardous materials found on site. The Vermont Department of Environmental Conservation, which is responsible for handling hazardous materials, did not immediately return a call for comment.
“A messy and confusing situation”
John Venezia, who managed LandAir’s two facilities in Vermont, said Wednesday the hazardous materials consisted of old computer parts that needed to be recycled and “a ton of leftover paint to paint the buildings.”
“Other than that, no hazardous hazardous materials,” Venezia said.
Venezia worked for LandAir for five years and was in Vermont for 10 months as a manager.
“We’ve all been fired, we’re done,” Venezia said. “I don’t know what happened. We arrived the day after July 4 and started laying off. As soon as they said no freight, I knew it was all over.”
Venezia said about 20 Vermont employees lost their jobs. LandAir’s website, which was still online Wednesday, says the company has 450 employees and offers one- and two-day trucking services throughout New England, upstate New York and New York. Canada.
Jesse Andrasi, a former driver for LandAir in Windsor, was also left bewildered by the company’s collapse.
“I just don’t get it because we weren’t hurting businesses or customers,” Andrasi said in an email. “There were times when we just couldn’t keep up, so I know it wasn’t for lack of business.”
Andrasi said on the last company-wide Zoom call, employees were told the business was thriving.
“So I was shocked to see that,” Andrasi said. “Just a messy and confusing situation.”
Contact Dan D’Ambrosio at 660-1841 or [email protected] Follow him on Twitter @DanDambrosioVT. This coverage is only possible with the support of our readers.