Hayward, CA-based Crescent Truck Lines has shut down all but a small portion of its business.
The family-owned company will continue with its dedicated accounts such as the one it has with See's Candies. Crescent has a contract with See's to act as its sole trucking firm in California, Oregon, Washington and Nevada.
"We're strong financially. We just want to stay that way," said Gregory Warn, president of the 44-year-old firm. "But we were hit by escalating costs, especially insurance, and the poor economy."
According to Warn, Crescent's workers' compensation costs rose 113% and its health benefits were raised $270,000 a year. He added that the company's insurance costs were about to make a "dramatic" rise as well.
Warn said the company would sell off some of its trucks, but continue servicing its dedicated accounts and its logistics company.
Crescent's employees were given 60 days' notice of the closure as required by law and will be paid through that time.