Alvan Motor Freight closes its doors

Alvan Motor Freight announced that they will be ceasing operations after 67 years of service and will be filing for Chapter 11 bankruptcy protection. The company is a family owned Midwestern regional LTL motor Carrier based in Kalamazoo.

"Today is the worst day of my business career. Alvan has had an incredible run but unfortunately all great things come to an end. Given the extremely competitive nature of our business, we wouldn't be here today had it not been for the fantastic effort of each and every Alvan employee. However, a number of problems outside of our control have overwhelmed us to the point where we were left without a choice," said President and CEO James Van Zoeren.

These problems include:

• Ongoing economic difficulties in the Midwestern economy, especially in the automotive sector.

• The 87 day strike at American Axle, one of Alvan's top customers. The resulting trickle-down effect that slowed and/or stopped automotive production was deadly.

• Overcapacity in the trucking industry, leading to increased competition, pricing pressure and margin erosion.

• Recent run-up in fuel prices, with diesel topping out over $4.80 per gallon.

• The financial crisis in America, drying up liquidity and eliminating potential credit options.

Industry consolidation and closures have left Alvan in an extremely unique position as one of a rapidly shrinking number of family owned carriers left.

"Alvan was quickly becoming a dinosaur. Our ability to compete with much larger carriers than ourselves was becoming compromised. Our costs were higher and we were struggling to keep up on a technological basis," said Van Zoeren.

Alvan has arranged to have the freight that remains in their system to be delivered by Central Transport Inc.

"Our goal here was to minimize disruptions in our customer's operations by delivering their freight in a timely manner," said Van Zoeren.

The company was founded in 1941 by the Van Zoeren family and currently employs about 525 people. Alvan Motor Freight, Inc. has terminals in Kalamazoo, Romulus, Grand Rapids, Saginaw, Jackson, Mesick and Alpena, Michigan. The company also has terminals in Ohio, Indiana and Illinois.

"Alvan has battled to the end. Thanks go to our customers, business partners and vendors for everything they have done for us. Most importantly, thanks go to all our employees, past and present, all of whom are members of the extended Alvan family. You have done everything that you can. Factors beyond our control have forced this onto us. Thanks from the bottom of my heart," Van Zoeren said.