Integrated Freight Corp., the new owner of Cross Creek Trucking based in Central Point, OR, has laid off most of the company’s office staff and parked its rigs, according to a report in the Mail Tribune. The Florida transportation company acquired Cross Creek Trucking on April 1, 2011.
Cross Creek Trucking had about 150 employees, including a staff of about 30 at its terminal off of Interstate 5, as well as 115 late-model tractors, 170 refrigerated trailers and 30 dry trailers. The company ceased operations on Dec. 2.
According to filings with the Securities and Exchange Commission, Integrated Freight Corp. gave former Cross Creek owner Mike DeSimone 2.5 million shares of common stock, a promissory note of $4 million and options for an additional 2.5 million shares. On April 1, Integrated Freight shares traded for 40 cents. In the past week, the per-share price has been 5 to 7 cents.
Signs of uncertainty appeared soon after Cross Creek was purchased by Integrated Freight, Johnny Hannah, a long-time driver with the company told the Mail Tribune. “Parts for trucks weren’t there, and they weren’t stocking tires,” Hannah said. “Recently, I couldn’t get fuel, and the PUC licenses expired on the tractors.”
He said he was told by company personnel to enter Oregon via Highway 97 and drive to Central Point via Highway 140 when he made his final trip on Dec. 2 — two days after Integrated Freight reported a $1.4 million fiscal second-quarter loss.
“I would normally have gone out no more than two days later,” Hannah said. “But when I parked the truck in the yard, they said don’t take it back out.”
Through the fiscal second quarter, which ended Sept. 30, Integrated Freight reported a six-month loss of $4.3 million. The Florida company reported revenue of $24.8 million between April 1 and Sept. 30, including $11.8 million during the fiscal second quarter.
“We were told they were trying to get a $5 million loan,” according to veteran driver Jim Straney. “There were a lot of people trying to make this work for them.”
“We were told big things would happen,” Straney told the Mail Tribune. “Well, they did. They took a good solid company with good customers that the former owner and employees worked hard to get. Everyone — drivers, dock people, mechanics and office personnel — are sitting at home.”