Updated Dec. 9 at 3:30 p.m.
Indianapolis-based Celadon filed for Chapter 11 bankruptcy Monday morning and shut down business operations, which affects all 4,000 employees.
In a press release, the company said:
"Celadon Group, Inc. announced that it, along with its 25 affiliate entities, have filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. Celadon also announced that it will shut down all of its business operations effective as of today, Monday, December 9, 2019. This shut down does not include the Taylor Express business headquartered in Hope Mills, North Carolina, which will continue to operate in the ordinary course while the Company explores a going concern sale of its operations. Celadon intends to use its Chapter 11 proceedings to wind down its global operations."
U.S. Attorney for the Southern District of Indiana Josh Minkler recently announced two top former Celadon executives, former chief operating officer William Eric Meek and former chief financial officer Bobby Lee Peavler, face federal fraud charges in connection with a scheme that robbed shareholders of $60 million of stock value. In April, Celadon agreed to pay $42.2 million in restitution to settle securities fraud charges stemming from falsely reporting inflated profits and assets to investors.
In a statement released Monday afternoon, Indianapolis Mayor Joe Hogsett said Celadon's bankruptcy decision was "the result of the worst kind of corporate recklessness, with the actions of a few highly-paid executives creating tragedy for workers across Central Indiana."
Hogsett said resources are available for Celadon workers and the city will work with partner agencies to connect them with short-term rsources and training. He encouraged affected workers to immediately file for unemployment insurance benefits with the Indiana Department of Workforce Development and visit Central Indiana WorkOne locations for career services assistance.