A 73 year old US trucking firm has declared itself bankrupt, and laid off 15,500 staff.

Employees turned up for work at Consolidated Freightways on Monday to find themselves locked out.

They then received phone calls at home, telling them to dial a number to hear a recorded message from the firm's chief executive.

In letters being posted to workers on Tuesday, the company said it simply did not have enough money to continue operations.

Consolidated Freightways, based in Vancouver, Washington, will file for bankruptcy later on Tuesday, and then pursue "the orderly liquidation of its business".

New blood

John Brincko was brought in to run the business just three months ago, in the hope of securing enough credit to see the company survive.

He said that he had been vigorously exploring ways to restore financial health to the freight firm before admitting defeat.

"We do not have the current resources necessary to sustain the business," he said in a statement.

"It is with sadness and regret that I must inform you that Consolidated Freightways has discontinued operations effective immediately and all terminals are closed."

More than 12,000 workers will receive termination notices immediately.

Share collapse

Consolidated Freightways billed itself as a "less-than-truckload" haulier, meaning that it accepted partial shipments from multiple companies and then loaded them together.

It had 250 terminals and 30,000 trucks in the US, Canada and Mexico.

Operations at the CF AirFreight and Canadian Freightway subsidiaries will continue operations as normal.

The company's stock traded on the Nasdaq stock market at more than $18 in early 1999, but closed at just 17 cents last week.