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Industry study 23 of 24 · Supply Chain Research Companion

Supply-Chain Failures, Bankruptcies and Busts

~10,000 words · 2 technical exhibits

The supply-chain business destroys companies in a few recurring ways, and the same lessons are relearned each cycle. A 99-year-old LTL carrier, Yellow, stopped operating on 30 Jul 2023 with a terminal network its rivals then bought for ~$1.88bn in the first auction round (reported); its liquidating plan was confirmed on 17 Nov 2025 after a court held it liable for billions in multi-employer pension withdrawal liability (reported). A venture-funded digital broker once valued in the billions, Convoy, shut on 19 Oct 2023; Flexport bought its technology on 1 Nov 2023. The world's seventh-largest container line, Hanjin Shipping, filed for receivership on 31 Aug 2016, leaving ships and cargo stranded outside ports that would not let them in. Toys "R" Us filed for Chapter 11 on 18 Sep 2017, twelve years after a ~$6.6bn leveraged buyout, and liquidated its US stores in 2018. Brazil's Americanas disclosed ~R$20bn of "accounting inconsistencies" in Jan 2023, much of it supplier-finance debt booked as payables; a Rio court closed its judicial recovery on 19 Oct 2026 (reported). Around them sit the busts of a capital cycle — TuSimple, Getir and Gorillas, Peloton's inventory glut, Forward Air's Omni acquisition, the decline of Li & Fung, Target's Canadian exit — and, in 2026, a fresh wave of freight distress (STG Logistics' Chapter 11 on 12 Jan 2026, reported). This section classifies the failures by the factor of the flow equation they turned on, tells each case briefly, and asks what each cost and who paid: employees, pension funds, creditors, suppliers, shippers and taxpayers. Two companion files tell the Yellow and Convoy cases in full and give a warning-signs checklist.

What the study covers

  1. 1Overview: the factors multiply, and so do the failures
  2. 2Measures of distress
  3. 3A taxonomy of failure
  4. 4Insolvency regimes that appear in the cases
  5. 5Trucking: Yellow and the carriers of the troughs
  6. 6Digital freight and the venture cycle
  7. 7Autonomy and robotics: TuSimple and the SPAC class
  8. 8Retail and consumer brands
  9. 9Leveraged roll-ups: Forward Air–Omni (2023–26)
  10. 10Quick commerce: Getir and Gorillas (2021–24)
  11. 11Hidden debt: supply-chain finance and supplier income
  12. 12Ocean shipping: Hanjin (2016–17)
  13. 13Disintermediation: Li & Fung (2010s–2020)
  14. 14Who paid
  15. 15Warning signs
  16. 16How to read failure numbers
  17. 17Key numbers
  18. 18Landmark companies and cases
  19. 19Pitfalls
  20. 20How an expert thinks about it
  21. 21Glossary

Technical exhibits

Worked examples, checklists and case studies included with this study.

Yellow and Convoy Case Studies

Yellow (integration, CARES loan, the Teamsters dispute, the shipper run, terminal auctions, the pension ruling and the 2025 plan) and Convoy (model, funding, why it failed, the Flexport deal), with who paid and lessons

Supply Chain Failure Warning Signs Checklist

Diligence questions by factor (cost to serve, density, reliability, capital, the cycle, shocks and licence), with the case where each would have mattered, and red flags for shippers

Companies in this study