Montgomery Transport enters liquidation as market pressures mount
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Montgomery Transport, a leading flatbed carrier based in Birmingham, Ala., has ceased operations and is preparing to file for Chapter 7 bankruptcy. The company’s shutdown comes amid a prolonged freight recession that continues to strain the trucking industry nationwide.
Founded in 2011, Montgomery employed roughly 650 people and operated a fleet of nearly 450 tractors under its main brand. Its business also included RM Logistics, MT Select, MT Dedicated, and Montgomery Logistics, serving both asset-based and brokerage segments.
The closure follows the failure of a planned sale to P&S Transportation, a subsidiary of PS Logistics. The deal was scheduled to close by the end of September but collapsed after a temporary restraining order was filed in Jefferson County Circuit Court. The order introduced legal complications that halted the sale and blocked a planned Chapter 11 reorganization.
A failed deal and investor retreat
Montgomery’s majority owner, One Equity Partners, had acquired the company in early 2022. By mid-2025, the firm was seeking an exit from the trucking sector, citing weak spot rates, rising costs, and aging equipment as key challenges. The failed transaction with PS Logistics was the last effort to avoid liquidation, according to a source close to the matter.
With no deal in place, Montgomery is now expected to file for Chapter 7 liquidation in the coming days. The abrupt halt to operations has affected hundreds of employees, including drivers, dispatchers, and logistics personnel. Many drivers have already received outreach from rival carriers offering quick placement.
Freight recession drives industry shakeout
Montgomery’s closure is part of a broader wave of bankruptcies in 2025. According to Werner Enterprises CEO Derek Leathers, at least 17 carriers operating more than 250 tractors have shut down in the last quarter alone. Industry data show continued downward pressure on freight volumes and rates, driven by overcapacity and lower shipping demand.
Mid-sized and regional carriers are bearing the brunt of the downturn. Operating costs remain elevated due to insurance, fuel, and maintenance, while contract freight demand has not fully recovered. For carriers with older fleets and tighter margins, these pressures are proving unsustainable.
Questions remain over future consolidation
The failed sale to PS Logistics highlights the difficulty of completing acquisitions in today’s environment. PS has been active in flatbed consolidation in recent years, acquiring multiple carriers to expand its footprint. However, even strategic buyers are showing caution as valuations drop and litigation risks increase.
Former Montgomery CEO Rollins Montgomery denied speculation that his legal dispute with current ownership contributed to the failed sale. In a statement, he expressed sadness over the company’s closure and said his thoughts remain with employees and families affected by the decision.
As private equity firms re-evaluate their trucking investments, analysts expect further market exits in the months ahead. Consolidation will likely continue, but only among firms with the capital to withstand volatility and integrate distressed assets.