STG Logistics has initiated Chapter 11 bankruptcy proceedings, citing $280 million in outstanding debt and strained liquidity. The filing marks a strategic reorganization effort to stabilize operations and preserve long-term viability.
- STG Logistics filed for Chapter 11 bankruptcy with $280 million in outstanding debt
- Operating losses reached $45 million in fiscal year 2024
- The company operates 37 distribution centers and serves over 1,200 customers
- A $50 million DIP financing facility has been secured for ongoing operations
- Restructuring plan confirmation expected within 12–18 months
- March 15, 2026, is the date of the first major court hearing
STG Logistics has formally filed for Chapter 11 bankruptcy protection, revealing a debt burden of $280 million as of December 31, 2025. The company cited deteriorating cash flow and mounting interest obligations as key drivers behind the decision, with operating losses exceeding $45 million in the 2024 fiscal year. The filing includes a comprehensive restructuring plan aimed at reducing leverage and restructuring creditor claims. The company operates a network of 37 regional distribution centers across the U.S. and serves clients in the retail, manufacturing, and e-commerce sectors. Despite maintaining over 1,200 active customer contracts, STG Logistics reported a 23% decline in revenue during the final quarter of 2025, attributed to decreased freight volumes and rising fuel costs. The bankruptcy filing allows the company to continue day-to-day operations under court supervision while renegotiating debt and supply agreements. Key stakeholders impacted include senior lenders holding $190 million in secured debt, unsecured trade creditors owed $62 million, and several major logistics partners. The company has secured a $50 million debtor-in-possession financing facility to support operations during the reorganization. The timeline for a restructuring plan confirmation is projected to span 12–18 months, with a court hearing scheduled for March 15, 2026. Market participants are closely monitoring the outcome, as the resolution could influence lending practices and operational models within mid-sized freight and logistics firms. The filing does not affect the company’s ability to serve existing clients, and STG Logistics has reassured customers that service levels remain uninterrupted.