A Detroit-based grocery-hauling company, SFD Transportation, has recently filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Northern District of Texas. This decision comes alongside several partner companies, including Del Mar Holding LLC and 11 other subsidiaries.
The bankruptcy filing reveals that SFD Transportation estimates it has between $500 million and $1 billion in liabilities, with assets totaling between $1 billion and $10 billion. The company also stated that it has between 5,001 and 10,000 creditors affected by this filing.
The list of businesses involved in the bankruptcy proceedings includes Cascade Food Brokers Inc., Del Mar Acquisition Inc., Hamilton Meat LLC, Harvest Meat Co. Inc., Harvest Sherwood Food Distributors Inc., Lamcp Capital LLC, SFD Acquisition LLC, SFD Co. LLC, SFD Transportation Corp., Sherwood Food Distributors LLC, Surfliner Holdings Inc., and Western Boxed Meat Distributors Inc.
The debtors have requested joint administration of the cases under one Chapter 11 case number assigned to the subsidiary Harvest Sherwood Food Distributors, which ceased operations on April 21, resulting in the layoff of 1,500 workers. Additionally, an involuntary Chapter 7 petition was filed against Sherwood Food Distributors on April 18, with the expectation that it will be dismissed after the start of the Chapter 11 case.
Top creditors listed in SFD Transportation’s bankruptcy filing include Burford Capital ($35 million), National Beef Packing Co. ($15.5 million), and Tyson Foods ($13 million). These creditors are based in Chicago, Kansas City, Missouri, and Springdale, Arkansas, respectively.
According to SAFER data, SFD Transportation specializes in carrying general freight, fresh produce, meat, refrigerated food, and paper products. The company currently operates 308 power units and employs 262 drivers.
Eric Kaup, Sherwood’s chief restructuring officer, signed off on behalf of SFD Transportation in the bankruptcy filing. The situation is still unfolding, and updates will be provided as the bankruptcy proceedings progress.
For more information on this developing story, please visit FreightWaves for the latest updates on this Detroit carrier and distributor’s large-scale bankruptcy.
