New Century abruptly closes and files for bankruptcy, driver sues for lack of notice

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New-Century-finalNew Century Transportation (No. 99 in OD sister site CCJ’s Top 250) has filed a voluntary petition for Chapter 7 bankruptcy in a federal bankruptcy court in New Jersey.

The Mount Holly, N.J.-based company had about 1,500 employees, according to court documents, and they were terminated June 9, the court documents say.

The company had about 1,000 drivers and 1,000 power units. New Century said in its bankruptcy documents it has between 200-999 creditors, and it has between $10 million and $50 million in assets and between $10 million and $50 million in liabilities, court documents show.

New Century has also been hit this week with a class-action lawsuit from driver Robert Kearney over the termination, who alleges the company violated the federal law by not giving drivers a written notice 60 days prior to their dismissal. Kearney’s suit says the company violated the federal Worker Adjustment and Retraining Notification (WARN) Act and New Jersey’s Millville Dallas Airmotive Plant Job Lass Notification Act.

Kearny is seeking for himself and other drivers 60 days of wages and benefits and severance pay for lost wages that’s equal to one week of pay for each full year of employment.

The WARN Act is designed to protect employees in “mass layoffs and plant closings,” according to court documents, and New Century would have been required to give the 60-day notice, Kearney’s suit alleges.

The company had $273 million in revenue in 2012, according to the CCJ Top 250, and hauled general freight nationwide.