Newspaper article THE JOURNAL RECORD

Jones Truck Lines Files Bankruptcy

Newspaper article THE JOURNAL RECORD

Jones Truck Lines Files Bankruptcy

Article excerpt

LITTLE ROCK (AP) _ Jones Truck Lines Inc., a 1918 mule-and-wagon operation that grew to become the 28th largest trucking company in the nation, filed for Chapter 11 bankruptcy protection Tuesday.

The Springdale-based company blamed the recession and a lender's refusal to extend additional credit for the company to pay its mounting bills.

The petition filed in U.S. Bankruptcy Court in Little Rock said Jones'

liabilities exceeded its assets by $16,242,828. The company listed total assets of $86,947,424 and total liabilities of $103,190,252.

Jones ceased operations at midnight Monday, according to company employes and a union spokesman.

The bankruptcy reorganization filing had been anticipated for some time in the trucking industry, said freight and shipping analyst Paul Schlesinger, vice president for research at DLJ Securities in New York.

"It's like a person with a debilitating illness _ you don't expect them to live very long, but the moment they go there is surprise,"

Schlesinger said in a telephone interview.

"The recession our country has been experiencing has resulted in a substantial reduction in company revenues," company President Rick L.

Johnson said in a statement issued this morning. "Although the company's freight operations indicate that the hard times may be lessening, the company has been unable to generate sufficient revenues to meet its expenses."

Johnson said because its lender refused to extend further credit, and because it could not find other sources of financing, "the company had no viable alternative to the bankruptcy filing."

Johnson could not be reached for comment Tuesday. Telephone calls to company offices in Springdale went unanswered.

Jones had operated 133 terminals in 23 states throughout the Midwest and the South. The company reported revenues of $240 million in 1990, said.

Transport Topics, a trucking industry publication, ranked Jones 28th in revenues among the top 100 trucking companies nationwide last year. In June 1988, it was reported that the company had 3,300 employees.

Jones is the second largest trucking company of its kind in Arkansas, said Jim Smith, chairman of the Arkansas Motor Carriers Association. …

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