URGENT UPDATE: STG Logistics Inc., a major player in the trucking industry, has officially filed for Chapter 11 bankruptcy in the US Bankruptcy Court for the District of New Jersey as of Monday. This move comes amid a devastating period for the shipping sector, known as the “great freight recession,” which began in March 2022 and has now entered its fourth year.
The legacy trucking company, founded in 1985, has reported approximately $1.16 billion in debt, with total assets and liabilities estimated between $1 billion and $10 billion. The decision to seek bankruptcy protection has been significantly influenced by changes from major retailers like Dollar General and Home Depot, who are increasingly establishing their own private shipping fleets, cutting deeply into traditional industry profits.
“Today’s announcement marks an important milestone in our efforts to strengthen STG amidst one of the most severe freight recessions in history,” stated CEO Geoff Anderman. He emphasized that utilizing the Chapter 11 process will position the company for future growth and success.
CFO Tyler Holtgreven highlighted that “softening freight demand, along with lingering excess capacity in the market,” were key factors in the company’s filing. In fact, private fleets from retailers now account for a staggering 70% of all outbound shipments in the United States, signaling a major shift in the logistics landscape.
Additionally, external pressures have compounded the crisis. The impact of tariffs introduced during the presidency of Donald Trump has led to a 14% year-over-year decline in import volumes during the second half of 2025. STG Logistics has reported a 7% drop in cargo volume for the same year compared to 2024. Rising inflation and climbing insurance rates have further strained operating expenses, as revenue continues to dwindle.
The implications of this bankruptcy filing are profound, not just for STG Logistics but for the entire shipping industry. As major retailers pivot to self-sufficient shipping solutions, traditional logistics companies face an uncertain future. The ripple effects could lead to job losses and further bankruptcies in a sector already grappling with unprecedented challenges.
As the situation develops, industry analysts will closely monitor how STG Logistics navigates this bankruptcy process and what it means for the broader freight market. Shareholders, investors, and employees alike are left anxiously awaiting clarity on the company’s path forward.
Stay tuned for the latest updates on this breaking news story as it unfolds.
