trucking

Sparhawk Trucking Seeks Buyer as Bankruptcy Threatens Mass Layoffs

Sparhawk Trucking, based in Wisconsin Rapids, filed for Chapter 11 bankruptcy in March and now faces potential mass layoffs as it pursues a buyer. The company's trustee cautioned in a late May notice that no guarantee exists regarding workforce retention under new ownership or continued operations. "No employee should count on the business remaining open or mass layoffs not taking place," said Matthew Brash, the Chapter 11 trustee and senior managing director at Newpoint Advisors. The advance notice satisfies federal and state requirements mandating 60-day notification of potential workforce reductions. The carrier has begun liquidating non-core assets to satisfy creditor obligations. In one transaction, CB Leasing of Iowa purchased 50 trailers for $950,000 deemed unnecessary for ongoing operations. Owner Mark Sparhawk previously attributed the company's financial distress to a convergence of litigation, asset mismanagement during his medical absence, equipment failures and an industry freight recession.