Coach USA, the largest privately-owned bus company in the US, recently filed for bankruptcy protection in Delaware after facing financial difficulties due to a 2019 private equity buyout and the COVID-19 pandemic. The company, which operates Megabus and other commuter bus lines, struggled to service its debt as bus ridership declined by 90% in 2020 compared to the previous year. Despite some recovery in ridership levels, Coach faced challenges such as higher interest rates, increased costs, and unpaid obligations.
As part of the bankruptcy filing, Coach USA entered Chapter 11 with nearly $198 million in debt, including unpaid pandemic relief loans and trade debts. The company currently operates in 27 locations in the US and Canada with over 2,700 employees and 2,070 buses. Three sale agreements are in place to sell off some of Coach’s business lines, aiming to preserve jobs for about 2,100 employees. The bankruptcy does not affect the company’s day-to-day operations, with CEO Derrick Waters ensuring that buses will continue to run as normal.
One of the proposed sale agreements involves Renco Group acquiring the majority of Coach’s assets in exchange for taking on $130 million of company debt and certain union contracts. Additionally, Avalon Transportation and ABC Buses have agreed to purchase specific bus lines and fleets from Coach for a total of $17.1 million. Despite the challenges faced by Coach USA, the company remains committed to safely transporting its passengers and working closely with its customers and transportation agency partners during the bankruptcy process.
