Gershman Transport folds after deal with Kleysen falls through

WINNIPEG (Oct. 19, 1999) — Winnipeg-based Gershman Transport International may be down but it isn’t out quite yet.

“We are considering our options,” said Lewis Gershman, president of the company, which folded on Friday after an offer to buy it was withdrawn by Kleysen Transport. “We have had to close our doors, but we are still trying to put together a deal with another firm to take on our employees and files.”

The 22-year-old company employed about 150 workers and 35 owner-operators, and offered truckload and less-than-truckload service across Canada and the United States. Sheriff’s deputies have towed away most of Gershman’s 150 trucks and other equipment last week.

Kleysen Transport, also based in WInnipeg, tendered an offer to buy portions of the Gershman business on Sept. 24. “After going through our due diligence phase, we decided we were better off not following through,” said Bob Lafrenier, Kleysen vice-president and chief financial officer. “We were impressed with the dedication of the people there, but the administrative side presented some challenges for us.”

With roughly $30 million in annual revenues, Gershman Transport struggled in recent months, and was hurt by a combination of higher fuel and labor costs.

In a farewell gesture typical of the Gershman family, all of the staff was treated to Chinese food and a glass of wine for a last toast.

— Myron Love