Dozens Shipping Firms File Chapter 11 Amid Industry Recession

The trucking and logistics industry continues to face significant challenges amid the ongoing Great Freight Recession, with dozens of companies filing for bankruptcy due to declining demand and flat or falling freight rates. Orlando-based Xtreme Quality Logistic LLC and its affiliate recently filed for Chapter 11 bankruptcy as part of this trend, reflecting a broader industry downturn characterized by a 25% drop in long-haul truckload demand and unseasonal freight declines. Meanwhile, the restaurant sector is also struggling, with the Texas-based Mexican dining chain Abuelo's filing for Chapter 11 bankruptcy, citing declining sales, rising food and labor costs, staffing difficulties, and shifting consumer preferences. Abuelo's, which once operated 40 locations, has seen its sales drop more than 15% recently and has been forced to close multiple restaurants, with its parent company Food Concepts International also filing for bankruptcy and seeking to merge the cases. The chain joins other casual dining brands like Bravo Brio Restaurants, Bar Louie, and Hooters in filing for bankruptcy protection due to persistent industry pressures. Both sectors illustrate the broader economic challenges impacting U.S. businesses in 2025 as they navigate reduced demand and increased operational costs.