O'Reilly logo

Financial Turnarounds: Preserving Value by William W. Sihler - Darden Graduate School of Business Administration University of Virginia, Henry A. Davis - Henry A. Davis & Co.

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 11. Service Sector

Burlington Motor Carriers, Inc.

Burlington Motor Carriers, Inc., filed for Chapter 11 protection six years after its LBO because of high overhead and over investment. New owners who purchased the company from bankruptcy right-sized its overhead, invested in state-of-the-art information systems, and strengthened relationships with high-volume customers.

Background

Burlington Motor Carriers was divested by Burlington Northern Railroad and taken private through an LBO in 1989. It filed for bankruptcy in December 1995 and was purchased out of bankruptcy by its current owners in December 1996.

Business Characteristics

Trucking is a highly competitive, cyclical, capital-intensive, low-margin business with few barriers to entry. ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required