SFD Transportation, a Major Grocery-Hauling Carrier, Files for Chapter 11 Bankruptcy
SFD Transportation Corp., a Detroit-based grocery-hauling company with over 300 trucks, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Northern District of Texas. The filing was made in Texas due to an existing pending case involving an affiliate of the company. The bankruptcy involves several partner companies, all part of the Del Mar Holding LLC family, which filed jointly for protection under a single case number assigned to Harvest Sherwood Food Distributors. This subsidiary shut down operations on April 21, laying off 1,500 workers, and an involuntary Chapter 7 petition was filed against Sherwood on April 18 in Michigan, which is expected to be dismissed with creditor approval.
According to the bankruptcy filing obtained by FreightWaves, SFD Transportation estimates it has between 5,001 and 10,000 creditors, with liabilities ranging from $500 million to $1 billion. The company’s assets are valued between $1 billion and $10 billion, underscoring the scale of its financial distress.
The filing also lists 11 other subsidiaries and affiliates involved in the bankruptcy, including Cascade Food Brokers Inc., Del Mar Acquisition Inc., Hamilton Meat LLC, Harvest Meat Co. Inc., Lamcp Capital LLC, SFD Acquisition LLC, SFD Co. LLC, Sherwood Food Distributors LLC, Surfliner Holdings Inc., and Western Boxed Meat Distributors Inc. Top creditors include Burford Capital ($35 million), National Beef Packing Co. ($15.5 million), and Tyson Foods ($13 million).
This large-scale bankruptcy highlights significant financial challenges faced by a major player in the grocery logistics and distribution sector, with extensive creditor exposure and a broad corporate footprint.
