In The News

Family-owned LTL closes after 67 years

KALAMAZOO, Mich. — Alvan Motor Freight, a family-owned Midwestern regional LTL motor carrier based in Kalamazoo, has ceased operations after 67 years of service and will be filing for Chapter 11 bankruptcy protection, according to statement posted on the company’s Web site.

“Today is the worst day of my business career,” President and CEO James Van Zoeren said. “Alvan has had an incredible run but unfortunately all great things come to an end. … A number of problems outside of our control have overwhelmed us to the point where we were left without a choice”.

The statement cited:

• Ongoing economic difficulties in the Midwestern economy, especially in the automotive sector

• The 87 day strike at American Axle, one of Alvan’s top customers.

• Overcapacity in the trucking industry, leading to increased competition, pricing pressure and margin erosion

• The recent run-up in fuel prices; and

• The “financial crisis in America,” drying up liquidity and eliminating potential credit options.

Van Zoeren also stated he had the company formally listed for sale “but just couldn’t find any takers.”

Alvan has arranged to have the freight that remains in their system to be delivered by Central Transport Inc.

As one of a shrinking number of family owned carriers, “Alvan was quickly becoming a dinosaur,” Van Zoeren said. “Our ability to compete with much larger carriers than ourselves was becoming compromised. Our costs were higher and we were struggling to keep up on a technological basis.”

 

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