Goshen trucking company files for bankruptcy

(Rigo Moran)

Central California Cartage Co, Inc. files for Chapter 7 bankruptcy protection after losing its operating permit

GOSHEN – A small trucking company based in Goshen has filed for bankruptcy protection after the company’s operating permit was involuntarily surrendered last year.

The company, Central California Cartage Co, Inc., filed for bankruptcy protection on March 25. The company lists Jim Sigler of Visalia as the shareholder, director and president.

This development comes months after the Federal Motor Carrier Safety Administration (FMCSA) caused the company to surrender its common and contract authority operating permits in November 2023. While FMCSA did not provide a reason for the permit removal, it lists reasons on the website that include failure to pay operating authority fees, not maintaining adequate safety ratings, not providing sufficient or correct information regarding vehicle registration and applications and failure to file proper paperwork.

Once a trucking company has had their operating authority removed, the FMCSA requires the company to undergo an audit before reinstating the authority permits. Without the permits, a trucking company cannot move goods over state lines.

The petition for Chapter 7 bankruptcy protection was filed in the U.S. Bankruptcy Court of Central California. The petition claims 49 creditors with debts up to $10 million and assets of just $50,000. Among the company’s debtors are Ryder Transportation Services of Chicago, XTRA Lease of St. Louis and Valley Pacific Petroleum Services of French Camp, California. Valley Pacific filed a civil suit, claiming breach of contract with the Tulare Superior Court.

The civil filing as seen by The Sun-Gazette shows that Valley Pacific is suing in the amount of $315,957.13, plus 18% interest, annually, which kicked in on January 1. That amounts to an additional $115 per day.

Valley Pacific alleges that Central California Cartage Co. is in breach of contract after receiving “goods or services” then not paying for them. Central California Cartage Co. also shows a court record for a misdemeanor traffic accident, of which they were convicted in 2017 in Tulare Superior Court.

According to public records available through FMCSA’s SAFER website, the company has been involved in two accidents and has had five vehicles towed in the previous two years. The site lists the company as having 25 trucks and 34 drivers. Over the same two year time period, 28 out of 110 truck inspections have failed.

Data provided by Commercial Carriers Journal shows that in 2020 and 2021, truck inspections sharply declined as law enforcement and truckers sought to keep distance. The number of inspections is trending up. The national average for out-of-service truck inspections is 22.3%, somewhat lower than the numbers posted by Central California Cartage Co.

The company has a poor reputation online as well. On Indeed’s employee feedback page, Central California Cartage Co. has a 2.8 of five star rating. While several former employees claim a positive experience, several had dim view points.

The most recent review posted on Feb. 26 2024. A one-star review- reads, “They’ll run you to the ground. Little pay you’re not running legal they have favoritism within the company drivers don’t look out for one another trucks are all dirty.”

“Really shady business, trucks breakdown catch on fire, pay minimum-wage, good spot for someone starting out, management sucks, They lie to you, Would not recommend,” an August 2019 review by an anonymous former employee reads.

Sigler did not return a request for comment.

Start typing and press Enter to search