The Demise Of Transcon | 10-4 Magazine

Lenny Pelullo got control of a failing firm with millions in assets for $12 in cash – 19 days later, it was out of business. At one time, Transcon Lines was one of the biggest trucking companies in Southern California, but it was running on fumes when Lenny Pelullo took the wheel in the spring of 1990. Based in Los Angeles, Transcon Lines employed 4,000 people, had 247 terminals in 45 states, and its assets were over $85 million. Unfortunately, its liabilities totaled almost 120 million, and although their revenue for 1989 was $226.5 million, the company ended the year with a net loss of about $31.6 million.

Amid the wreckage, Transcon – with over 3,500 trucks and terminals in 45 states – still stands out. A bankruptcy trustee in L.A. had claimed in court that companies linked to Pelullo picked up Transcon Lines for almost nothing and then siphoned millions of dollars from it in just a few weeks. An unintimidated Pelullo denied the charge and said words can’t hurt him. “I always make the distinction between allegations and alligators,” said Pelullo, a brash Miami businessman who led the group that acquired Transcon Lines.