Caliber System, the parent of Viking Freight, a national, less-than-truckload carrier, was dissatisfied with operating losses following the combination of four separate transportation companies that Viking had acquired and merged. After replacing Viking's senior management, Caliber determined that the Company's problems would not be resolved within an acceptable time frame. With this in mind, Caliber evaluated various options for selling all or part of Viking. In March of 1997, Caliber sold Viking's Texas operations to an investment group, including management, and proceeded with the shutdown of all remaining operations except the Western Division.
Mr. Brodsky was retained to participate in all aspects of managing this shutdown which included closing 80 terminal locations, laying off 4,000 employees and selling 10,062 tractors as well as trailers and equipment, all of which was spread across the country. Mr. Brodsky's primary responsibility was to sell all excess equipment.
All employees were laid off within WARN Act requirements. All tractors and trailers were sold in a single transaction in June of 1997. The terminals were closed or sold and the project was successfully concluded one year ahead of schedule with financial results substantially better than budgeted. Immediately following the conclusion of this project, Federal Express announced its plan to acquire Caliber System in a stock swap valued at $2.4 billion.
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