Guardian Freight Bankrupt: Unsecured Creditors Owed Hundreds of Thousands

Household goods brokerage Guardian Freight has filed for bankruptcy, owing hundreds of thousands of dollars to trucking companies and brokers alike. After reporting a 92% drop in revenue in 2020, the company has listed its assets as $50,000 – $100,000, and its liabilities at $500,000 – $1 million. Once Guardian Freight pays associated administrative fees, the Indiana-based company states it will have no money to pay its unsecured creditors.

Guardian Freight has experienced steady legal issues since late 2020, being court-ordered to pay several creditors. In October, the brokerage was ordered to pay FitzMark Inc. $20,500. They received another court order to pay Sunteck TTS over $14,200 for unpaid transport services in December.

In October last fall, Cincinatti-based Loth Logistics LLC filed a breach-of-contract lawsuit over a contract arranging the transport of various shipments that Guardian Freight failed to pay. The lawsuit resulted in a $247,000 payment ordered from Guardian Freight to Loth.

With Guardian Freight’s broker authority revoked by the Federal Motor Carrier Safety Administration, a creditor’s meeting has been scheduled for May 20th, planning to organize these drastic financial issues.

Source: FreightWaves