Central Freight Lines Closing After Nearly a Century in Business

Exclusive: Central Freight Lines to Shut Down After 96 Years

Central Freight Lines, the Waco, Texas-based less-than-truckload carrier, is preparing to shut down after nearly a century in business. The company has notified employees, drivers and customers that it will stop accepting new shipments Monday and begin winding down operations.

The closure will affect more than 2,100 employees, including approximately 1,325 drivers. About 820 employees are based at Central Freight’s headquarters in Waco. The company operated roughly 1,600 power units and had 65 terminals before deciding to cease operations.

Central Freight said it expects to deliver substantially all freight already in its system by Dec. 20. The carrier said fuel cards remained active and that drivers would be paid for freight hauled through the completion of the wind-down.

“Years of operating losses and struggles for many years sapped our liquidity, and we had no other place to go at this point,” Central Freight President Bruce Kalem told FreightWaves. “Nobody is going to make money on this closing, nobody.”

A source familiar with the company said Central Freight had accumulated too much debt and too many unpaid bills to continue operating. The company explored multiple options, including securing additional funding, finding a buyer for the entire business and pursuing a Chapter 11 reorganization, but none of those efforts produced a path forward.

Central Freight said its liabilities exceed its assets and that its remaining assets are subject to liens held by multiple creditors. The company has not indicated whether it will file for Chapter 7 bankruptcy or liquidate outside of bankruptcy. However, the carrier does not plan to reorganize.

Efforts to Keep the Carrier Operating Fell Short

Central Freight’s statement said the company had explored all available alternatives before concluding that a safe and orderly wind-down was the best remaining option. The company said its primary goal is to complete deliveries, support employees and maximize the funds available to address its obligations.

“We make this announcement with a heavy heart and extreme regret that the Company cannot continue after nearly 100 years in operation,” Central Freight said. The company thanked its workforce, customers, vendors, equipment providers and other stakeholders for their support.

The carrier’s ownership and management had made changes during the past year in an effort to stabilize the business. Jerry Moyes, who owns Central Freight, was named interim president and chief executive officer during an executive reshuffling. Kalem became president in July, while Moyes remained chief executive.

According to company officials, Moyes provided substantial financial support, but it was not enough to overcome the carrier’s operating losses and liquidity problems. Central Freight also sought a buyer for the entire company. A source familiar with the process said potential buyers showed interest in individual pieces of the network but not in acquiring the business as a whole.

The company’s broad terminal network may have complicated those discussions. Potential buyers already operating in some of the same markets may not have needed additional locations or employees, according to the source.

Central Freight also said it is negotiating the sale of a substantial portion of its equipment. It is coordinating with other regional LTL carriers to help employees apply for jobs in their local areas, although the company said no asset purchase or employment offer is guaranteed.

Kalem said he was aware of interest from a large carrier in hiring many Central Freight drivers but could not identify the company. He also said management would work to help affected employees find new jobs during the limited time remaining before operations end.

Customers and Freight Operations Affected

GlobalTranz, a third-party logistics provider, notified customers that it had immediately removed Central Freight as a blanket and customer-specific carrier option to prevent new bookings. The move reflects the need for shippers and intermediaries to arrange alternate transportation as Central Freight stops accepting freight.

Central Freight’s remaining drivers and terminal employees face the practical challenges of completing deliveries while preparing for the loss of their jobs just before Christmas. The company said it expects to have enough liquidity to complete deliveries over the following week in an orderly manner.

During the early stages of the pandemic, Central Freight was one of four trucking-related companies to receive the maximum $10 million award through the U.S. Small Business Administration’s Paycheck Protection Program. Kalem said the funds were used for payroll. He also acknowledged that employees and drivers had taken pay cuts in recent years, although some pay was later restored or increased.

The company’s closure is the largest trucking shutdown since Celadon ceased operations in 2019, according to FreightWaves. It marks the end of a carrier that played a significant role in regional LTL transportation across the South and Midwest.

A Long History in Regional Freight

Central Freight Lines was founded in Waco in 1925 by Woody Callan Sr. The company began with regular routes connecting Dallas, Fort Worth and Austin and later expanded throughout Texas and into surrounding states.

Central Freight received authority to operate across the 48 contiguous states in 1991 and expanded into markets including Louisiana, Colorado, Kansas, Missouri, Illinois and Mississippi. After Central’s original business was consolidated into Viking Freight in the 1990s, a management-led investment group purchased assets and reopened a new Central Freight Lines in 1997.

The carrier later expanded into additional western and southern markets through acquisitions, including Circle Delivery, DTI, Wilson and Volunteer Express. It was recognized as Carrier of the Year by GlobalTranz in 2020.

After 96 years, Central Freight’s shutdown will affect drivers, dockworkers, mechanics, office staff, customers and communities connected to its terminal network. For the company’s employees, the immediate priority is completing the freight already in transit and finding work as the wind-down proceeds.