Paramus-based Coach USA, a leading private bus company in the United States, has filed for Chapter 11 bankruptcy due to ongoing struggles with ridership recovery following the COVID-19 pandemic. The company, which operates across the U.S. and Canada, employs about 2,700 people and operates over 2,000 buses for various services. Coach USA has roots in the bus industry that span over 100 years and is known for its brand Megabus.
The bankruptcy proceedings are intended to maintain uninterrupted service for customers and preserve over 1,797 union and non-union jobs. Despite rumors of financial instability, the company’s total ridership in 2023 was only 45% of pre-pandemic levels, significantly lower than regional transit agencies like NJ Transit. Coach USA has been impacted by rising operating expenses, including fuel, insurance, and labor costs, leading to its current financial situation.
The shrinking competitive landscape in the private bus industry has been highlighted by Coach USA’s exit from certain markets, including Hudson County routes that were taken over by NJ Transit. The company’s bankruptcy filing reflects broader challenges faced by transportation companies during the pandemic. With ongoing uncertainty surrounding its future, the outcome of Coach USA’s restructuring efforts will have significant implications for the public transportation sector in New Jersey and beyond.
