Business

Lakewood Ranch's Integrated Freight to refinance subsidiary after layoffs

LAKEWOOD RANCH - Integrated Freight Corp. announced today $3.4 million in financing to restructure equipment purchases of its subsidiary Cross Creek Trucking based in Oregon after reports that most of Cross Creek's office staff and drivers had been been laid off.

The Medford-based motor carrier, that specializes in transporting refrigerated organic fruit and vegetables, was purchased by Integrated in April and truckers with the company said recently equipment like tires and truck parts were not being stocked, licenses had expired and fuel was not being supplied, according to reports from the Mail Tribune, an Oregon newspaper.

In a September SEC filing, Integrated Freight reported $795,000 in transaction costs related to Cross Creek Trucking. Through the fiscal second quarter, which ended Sept. 30, Integrated Freight reported a six-month loss of $4.3 million. The company reported revenue of $24.8 million between April 1 and Sept. 30, including $11.8 million during the fiscal second quarter, according to the newspaper.

With the $3.4 million financing from Utica Leaseco, Hank Hoffman, president and COO of Integrated Freight, said the carrier’s revenue equipment would be refinanced.

“Since IFCR’s acquisition of Cross Creek earlier this year, we have recognized that restructuring the company’s financing would be key to its long term success,” Hoffman,said. “With the new equipment financing in place, the Cross Creek team will be able to focus on profitable growth in its niche refrigerated markets."

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