Red River bankruptcy proceedings continue as GFL Environmental takes over Fort Wayne contract

The Texas-based company is in talks to be acquired by a private equity firm. Meanwhile, the Indiana city is cutting ties with Red River after months of service issues that have also been seen in Nashville and elsewhere.

What happened

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Why it matters

Red River's bankruptcy has garnered industry attention because of the resulting service problems, but also because there are few recent examples of a sizable waste company entering bankruptcy.

The company’s court filings cite the pandemic as a key issue, given “substantially increased waste volume” that led to “higher costs and unexpected wear and tear on trucks, employees, and supply-chain shortages in parts and repair-and-maintenance labor.” It then faced “a refusal by certain municipalities to increase prices paid for rising costs” and “substantial fines” due to not meeting service standards. A steep decline in C&D waste levels also affected its roll-off business. An initial October filing also references issues with insurance claims due to two “significant” crashes.

A court filing estimated Red River’s gross revenue declined from $42.3 million in 2019, to $33.4 million in 2020 and nearly $27 million as of Nov. 24, 2021. As of October, it reported an estimated 200 non-union employees and 184 trucks.

This news brief is based on reporting published by Waste Dive on 2022-07-01. The original report is linked below.