MISSISSAUGA, Ont. — After 57 years, Armbro Transport has permanently closed its doors, the company placed into receivership Friday.
President Jim Davidson confirmed the decision to Trucknews.com. He blamed the closure on market conditions and intense pressure on rates.
“It had been failing financially for some time,” he said. “That would be the result of a number of things, at the top of the list, the marketplace itself. We needed an increase from our customers of 8-10% and you can’t get it. It doesn’t exist, because there’s sufficient competition out there that won’t allow it to happen and it has depressed our rates.”
Davidson said there will be no attempt to restructure and revive the organization.
“It has been wound down and the equipment will be sold off,” he said.
Many of the company’s drivers are already working for other carriers, he added.
Davidson took over the company a year and a half ago with an eye towards reviving it from its already tenuous state.
“I took it over on the basis it needed to change significantly from the direction it was heading and I was hopeful I could make that work. In the end, it obviously didn’t,” he said.
James Menzies is editor of Truck News magazine. He has been covering the Canadian trucking industry for more than 15 years and holds a CDL. Reach him at email@example.com or follow him on Twitter at @JamesMenzies. All posts by James Menzies