According to a report by "Mutha Trucker," which covers the trucking industry, Montgomery LLC, based in Birmingham, Alabama, has filed for Chapter 7 bankruptcy protection and immediately ceased operations.

The sudden cessation of operations by the trucking company has 1,000 employees jobless, including hundreds of drivers stranded across the United States. This incident has caused significant disruption to the trucking industry and has presented direct challenges the drivers and customers who relied on the company.

Montgomery Transport LLC's formal announcement of filing for Chapter 7 bankruptcy protection means that the company will undergo liquid rather than restructuring. Unlike Chapter 11 bankruptcy, which allows a company to continue operating while it undergoes restructuring, Chapter 7 bankruptcy signifies the complete termination of the companys business activities. The announcement came as a shock, with employees receiving little to no advance notice, which forced the entire network of the company to cease operations immediately.

The resulted in approximately 1,000 employees being laid off, including 600 truck drivers who were on the road making deliveries at the time of the announcement. The has instructed drivers who are within closer proximity to return to the terminal and wait for further notice. For those who are currently completing deliveries, the company has asked them to finish the current but not to take on any new ones. This mass impact has created an immediate employment crisis for the hundreds of families who relied on the company for their livelihood.

According to communication information shared by employees, Montgomery Transport LLC's financial struggles began to surface earlier this year. In June 2025, the company's majority owner, a equity firm, decided to exit the trucking industry and sell the company. By July 2025, P&S Transportation began conducting due diligence on the company with plans to complete the acquisition on September 30th.

However, on September 26th, a lawsuit filed by Rollins Montgomery and the issuance of restraining order stalled the acquisition process. With the traditional acquisition agreement stymied, the company attempted to push forward with the acquisition through Chapter 11 bankruptcy proceedings. By October8th, the situation had worsened further when creditors were unable to agree on terms, forcing the company to turn to filing for Chapter 7 bankruptcy protection and completely cease operations

Montgomery Transport LLC, in a notice to its drivers, stated that wages for completed work would be secured. For those who are on deliveries, the company has asked to complete the delivery and assured compensation. The company has instructed drivers who are closer to the Birmingham headquarters to return to the terminal, while those who are farther away have been asked to home and wait for further notice. Despite these arrangements, the sudden closure has created a significant amount of uncertainty regarding final wage payments, benefits, and other employment-related matters.

This collapse highlights the fragility of trucking companies in today's economic climate and the ripple effects that such operational halts can have