Yellow Corp (NASDAQ:YELL) shares are trading higher by 55.6% to $2.74 Tuesday morning on continued volatility after the company reportedly ceased operations and is preparing for bankruptcy.
Per a report by the Wall Street Journal, the Nashville-based company is ceasing all operations at midday Sunday and plans to file for bankruptcy. It is also in talks to sell off parts of the business.
Nearly 30,000 jobs, including 22,000 Teamsters members, are at risk, and nonunion employees have already been laid off after halting new shipments.
According to the Wall Street Journal, Yellow has faced increasing financial challenges this year due to a decrease in shipping demand across the freight sector, resulting in lower volumes and declining rates. As a consequence, its cash reserves dropped from $235 million in December to approximately $100 million in June.
According to data from Benzinga Pro, YELL has a 52-week high of $8.50 and a 52-week low of $0.43.
