A California-based trucking and logistics company, which contracts with the US Postal Service to transport mail, recently filed for Chapter 11 bankruptcy.
Family-owned Matheson Postal Services Inc. of Sacramento filed its petition in US Bankruptcy Court for the Eastern District of California on May 5. The company’s terminal processing services division, Matheson Flight Extenders, also filed for bankruptcy the same day.
At press time, Matheson’s attorney, Gregory Nuti, had not responded to FreightWaves’ request for comment.
The filing lists his assets and liabilities between $10 million and $50 million. The 60-year-old trucking and logistics company says it has up to 5,000 creditors and maintains funds will be available for distribution to unsecured creditors once it pays administrative fees.
The company was founded by Robert and Carol Matheson in 1962 and is a transportation and logistics provider for the Postal Service and other commercial carriers.
According to the Federal Motor Carrier Safety Administration’s SAFER database, the trucking company has 248 power units and 383 truckers.
In November, Matheson filed an appeal with the Postal Service Board of Contract Appeals (PSBCA). At press time, a Postal Service spokesperson had not responded to FreightWaves’ request for comment on the company’s appeal.
Recently, Rooney Trucking, headquartered in Polo, Missouri, which also contracts with the Postal Service to haul mail, filed a lawsuit with the PSBCA. The family carrier, which had 37 drivers and 66 power units, ceased operations and filed for Chapter 7 bankruptcy.
Some mail contractors have struggled to stay afloat since the Postal Service announced it was revamping its $6.6 billion contract program with private truck fleets in 2019. The program, known as dynamic route optimization, changed the way private carriers were paid, moving from contract rates to trucking companies paying on the basis of mileage. This led to the consolidation of courier companies that could serve a larger area and crowded out some of the smaller private entrepreneurs in the industry.
Matheson’s largest unsecured creditor is Porter Billing Services of Birmingham, Alabama, which owed more than $1.4 million. The filing also lists the Comdata Mastercard program of Covington, Louisiana, which owed more than $162,000, and Penske Truck Leasing of Philadelphia, which owed more than $156,000.
Trucking giant US Xpress lays off 5% of company’s workforce
Illinois trucking company files for bankruptcy after nuclear verdict
Missouri trucking company closes after USPS cuts mail carrier contracts