A California-based third-party logistics company, which had 34 power units and 33 drivers, filed for bankruptcy liquidation on Thursday.
Wise Choice Trans. Corp., headquartered in Hayward, California, filed its petition in the U.S. Bankruptcy Court for the Northern District of California.
The 3PL, which was founded in 2009, offered final mile, less-than-truckload and full truckload services in the San Francisco Bay area. Wise Choice also provided warehouse and fulfillment services before shuttering operations.
Wise Choice listed its assets and liabilities as between $1 million and $10 million, according to the petition. It stated that it has up to 49 creditors and maintains that no funds will be available for unsecured creditors once it pays administrative fees. Erick Crespo is listed as the CEO of the trucking firm. He has also filed for personal bankruptcy protection, according to the petition.
As of publication, Crespo’s attorney, Stephen D. Finestone, did not respond to FreightWaves’ request for comment.
The trucking company’s top secured creditor is Fremont Bank of Livermore, California, which is owed more than $1.3 million for more than 20 Freightliner tractors and other equipment. The petition states that Propella Capital LLC of Brooklyn, New York, is the largest unsecured creditor and is owed $100,000.
In its petition, Wise Choice posted gross revenues of around $3.6 million in 2023, a drop of around $600,000 compared to its revenues of $4.2 million in 2022.
Over the past 24 months, Wise Choice’s trucks had been inspected 94 times, and five had been placed out of service for a 5.3% out-of-service rate. That is significantly lower than the industry’s national average of around 22%, according to the Federal Motor Carrier Safety Administration’s SAFER site.
The company’s drivers had been inspected 106 times, and two were placed out of service over a two-year period, resulting in a 2% out-of-service rate. The national average for drivers is about 6.7%, according to FMCSA data. The company’s insurance was canceled on Jan. 5.
In the petition, Wise Choice lists its involvement in four legal actions that are ongoing or have been concluded in San Francisco Superior Court and in Santa Clara Superior Court, although no amounts were listed.
A creditor’s meeting has been set for Jan. 31.
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