Major Logistics Firm STG Files Bankruptcy as Freight Recession Grinds On

STG Logistics became the largest trucking company to seek bankruptcy protection in 2026 when it filed for Chapter 11 reorganization January 12th, carrying more than $1 billion in debt onto the growing pile of freight industry casualties.

The 41-year-old intermodal and logistics giant entered into a restructuring support agreement with equity sponsors and lenders that eliminates roughly 91 percent of its debt whilst providing $150 million in fresh capital to keep operations running. The Illinois-based company operates approximately 15,000 domestic containers, 3,300 chassis, and 4.5 million square feet of warehouse space serving customers across the United States.

"We are confident that leveraging the chapter 11 process will best position the business for long-term growth and success," CEO Geoff Anderman said in announcing the filing, adding operations would continue without disruption during proceedings.

The collapse marks the highest-profile victim yet of what industry insiders call the Great Freight Recession—a relentless downturn that began March 2022 and shows few signs of abating despite cautious optimism from some analysts. Long-haul truckload demand plummeted 25 percent in 2025's first half whilst softening freight volumes and persistent overcapacity crushed rates across the sector.

STG represents the brutal reversal of pandemic-era fortunes. The company experienced explosive growth during 2020's COVID disruptions, with revenues peaking in 2021. But three years of declining rates and excess capacity steadily eroded profitability. CFO Tyler Holtgreven told the bankruptcy court that "softening freight demand, along with lingering excess capacity in the market, has led to a declining rate environment and further strained STG's performance."

The filing arrives amid a wave of industry distress. Freight companies filed 21 bankruptcy petitions in 2025's third quarter alone, whilst iconic carriers including 79-year-old USPS contractor 10 Roads Express shuttered operations entirely without seeking court protection. That company's January 30th closure will eliminate 2,000 jobs.

Some executives detect nascent recovery signs. Echo Global Logistics CEO Doug Waggoner predicted market improvement "likely after the first quarter of 2026," noting freight traditionally weakens through February before strengthening mid-March. "I'm pretty bullish that 2026 is going to be better," Waggoner told industry publication Logistics Management.

But lenders remain cautious. Equipment finance sources say banks haven't "pulled the trigger" on repossessing assets from failing carriers, allowing "zombie carriers" to continue operating whilst depressing rates industry-wide.