Dorsey Trailers Contemplates Bankruptcy

Atlanta GA-based Dorsey Trailers has announced that filing a bankruptcy petition is "a distinct possibility" - after having laid off most of its employees and halting production while it meets with its largest lender to renegotiate its debt.

Dorsey has suspended operations at its three manufacturing plants in Elba AL, Cartersville GA, and Dillon SC.

In a company-issued press release, John L Pugh, chief executive officer, said, "Some limited production will take place in order to finish trailers that are near completion, but substantially all production is suspended as we evaluate our options."

Pugh said about 250 employees have been laid off at the company's factory in Elba, and about 50 more at its plant in Cartersville. The layoffs came a day after union employees at the Elba plant rejected a tentative contract that would have cut their wages about 25%.

About 95 employees continued working recently to finish partially completed trailers at the two plants and the company's third factory in Dillon, Pugh said.

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