Bruce R. Smith under creditor protection

SIMCOE, Ont. — The Ontario Superior Court of Justice has granted family carrier Bruce R. Smith protection from its creditors under the Companies’ Creditors Arrangement Act ("CCAA").

KPMG is the court-appointed monitor while the Simcoe-based specialized flatdeck and reefer carrier undergoes restructuring efforts.

Major secured creditors are said to support the move.

The company says its revenues have taken a beating in the current freight recession and it has more equipment and related carrying costs than can be supported financially.

In a press release, the carrier stated although there are some early signs of recovery, it has decided that it would still need CCAA to match a new cost structure with a lower revenue model in the short to mid-term.

Bruce R. Smith ranked as the 37th largest Canadian fleet in Today’s Trucking’s list of Top 100 For-Hire Carriers in 2009 with 350 trucks and 1300 trailers.

Over the last 10 months that has dwindled to about 200 power units and 1,100 trailers.

The self-titled company was founded in 1947 with one truck hauling from the farming communities in southwestern Ontario.

Today, operated by Bruce’s son John H. Smith, the carrier is a fixture in the northeast U.S.-Ontario-Quebec corridor, running in specialized, foodstuffs, beverage, manufacturing, and steel sectors. It also was one of the first carriers to move trailers intermodally on CPR’s Expressway.

The company says it will be "business as usual" during the restructuring process and the carrier plans to try and preserve as much of its employment base as possible so it is well prepared when the freight market turns around as expected.