Small Trucking Company’s Collapse Leaves 80 Drivers Without Jobs

80 drivers face job losses as Wisconsin trucking company fails to find buyer

A small trucking company in Wisconsin is shutting down after failing to find a buyer, putting dozens of driving jobs at risk and ending the operations of a business that also maintained its own shop and office staff.

Sparhawk Trucking and Sparhawk Truck and Trailer, based in Wisconsin Rapids, began the initial phase of the shutdown on Tuesday, September 8. The process included an equipment liquidation and the termination of seven office employees and 13 shop employees.

The company expects the remaining layoffs to take place in November. In total, 74 employees are expected to lose their jobs permanently. Those layoffs include 42 truck drivers, 16 shop employees and 16 office employees.

Sparhawk also notified 38 owner-operator drivers about the company’s situation. The notice was issued “out of an abundance of caution,” according to the information provided. Because those drivers operate as owner-operators rather than company employees, the notice does not necessarily mean they are included in the 74 employee layoffs. However, it does show that the shutdown could affect as many as 80 drivers connected to the business.

For company drivers, the closure means the loss of their employment as Sparhawk winds down. For owner-operators, the company’s failure may affect their business relationship with the carrier and the work available through it.

The company filed for bankruptcy in March and notified employees of the filing in June. Sparhawk reportedly owes $10.1 million to WoodTrust Bank. After entering bankruptcy, the company was unable to find a buyer to continue the business.

Without a buyer, the company has moved forward with liquidation and a complete shutdown rather than a transition to new ownership. The equipment liquidation marks one of the first visible steps in that process, while the later layoffs are expected to bring the company’s employment operations to an end.

For drivers, the closure illustrates the direct effect that a carrier’s financial problems can have on the workforce. A bankruptcy filing does not always result in an immediate shutdown, since a company may seek financing, restructure its debts or find a purchaser. In Sparhawk’s case, the search for a buyer did not produce a result, leaving the company to liquidate its equipment and reduce its workforce.

The impact extends beyond the trucks on the road. Sparhawk Truck and Trailer employed mechanics and other shop personnel, while office employees handled the administrative work required to support the trucking operation. The shutdown therefore affects workers across the company, not just those assigned to drive.

The company’s notice also separates the number of employees losing their jobs from the broader number of drivers who may be affected. The 42 company drivers are included in the announced layoffs. The additional 38 owner-operators received notice because of the company’s financial condition, bringing the total number of drivers connected to the shutdown to approximately 80.

The layoffs are expected to be permanent. As the liquidation proceeds, the company’s employees and owner-operators will be left without the work or carrier relationship they previously relied on through Sparhawk.

Sparhawk’s shutdown follows several months of financial uncertainty. Employees learned of the bankruptcy filing in June, three months after it was filed, and the company then continued efforts to find a buyer. The unsuccessful sale process has now led to an equipment liquidation, immediate staff reductions and a planned final round of layoffs in November.

At the conclusion of that process, 74 employees will have been laid off, including 42 drivers. The 38 owner-operators who were also notified represent the wider group of drivers potentially affected by the company’s closure.