Coach USA, the operator of several commuter bus lines in the U.S. and Canada, has filed for bankruptcy protection and plans to sell its assets.
Coach, the largest privately-owned bus company in America, was acquired by private equity firm Variant Equity Advisors for $270 million U.S. using debt that remains on the company's books.
In its bankruptcy filing, Coach said that it has struggled to service its debt as the pandemic caused bus ridership to decline by more than 90%.
While ridership levels have rebounded somewhat since the end of the Covid-19 crisis, they remain at 45% of pre-pandemic levels, said the company.
Coach USA said its debt servicing charges also rose sharply over the past 18 months as interest rates climbed higher.
The company said that its buses will continue to run normally in the U.S. and Canada during the company's bankruptcy proceedings and debt restructuring process.
Coach USA currently operates in 27 locations in the U.S. and Canada, with 2,700 employees and 2,070 buses.
The company entered Chapter 11 bankruptcy protection with $197.8 million U.S. in debt, including $37 million U.S. due on a pandemic relief loan from the U.S. federal government.
Coach operates several other bus brands in addition to Coach, including Megabus, Dillon's Bus Company, and Go Van Galder.
As a privately held company, Coach USA’s stock does not trade on a public exchange.
