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Trucking startup Convoy closes operations with no buyer

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Re: Trucking startup Convoy closes operations with no buyer

#561
post #478

Earlier quoted context omitted.

> paid comp to the execs for a full year IDK if Shone did things the most intelligent way, but the general story is not uncommon. Shareholders/creditors have a mess if the CEO and CFO walk out the door for their new job; it is financially beneficial for them to liquidate assets and shut the door. Shareholders/creditors don't have a mess when the engineer and a product manager walk out the door to their new job. That'…

This stuff doesn’t require the CEO or CFO either. Receivership doesn’t even require the active participation of the board, so yes there’s some benefit of keeping existing executives around but that’s often offset by the costs of doing so.

> Receivership doesn’t even require

Cooperation of board/executives is not required but it is immensely helpful.

"The easy way" vs "the hard way."

Re: Trucking startup Convoy closes operations with no buyer

#562
post #412

There are some really profound misunderstandings of how bankruptcy and credit work in this thread. Creditors are ranked by seniority and get paid out in order by seniority. Equity is below every creditor and has been completely wiped out. Companies are not allowed to take cash or sell the furniture to pay out employees. That money is legally owed to creditors and attempting to stiff them is theft. I'm sorry to those…

Not paying employees for work already rendered is wage theft, which is actual theft.

> Not paying employees for work already rendered is wage theft, which is actual theft.

Correct.

I can only assume "companies are not allowed to pay out employees" refers to suggestions of severance, health care, etc. in this thread.

Not earned wages, which have high legal priority.

Re: Trucking startup Convoy closes operations with no buyer

#563

Earlier quoted context omitted.

Well with proper labor laws in place, that bill could be secured in expense of the shareholders. A wage labourer should be able to expect to know if they will be able to feed their families the next month.

> in expense of the shareholders. Lol, lose more money than invested. > A wage labourer should be able to expect to know if they will be able to feed their families the next month. A wage laborer should make $1,000,000 per year.

They already do lose a lot of money if things go south. Its a risk they should, as investors, be willing to take. If their idea is successful, as they expected, they will make it back.

Wage labourers lose a lot of time and money invested as well, when their livelihood is taken away from them, do they not count?

Re: Trucking startup Convoy closes operations with no buyer

#564
post #521

Earlier quoted context omitted.

I've worked in the sf tech industry my entire career and my employment contracts have never included guaranteed severance. I've seen severance being paid out to fellow employees but afaik it is done as courtesy and wasn't legally required. Are you European? Maybe it's different there.

> my employment contracts have never included guaranteed severance My assumption was that we would not be talking about "unpaid severance" if there was no severance defined in the first place. > Are you European? Maybe it's different there. Generally severance is not legally mandated, but can be mandated under some specific circumstances, e.g. no-notice termination. Usually it is similar to US: either defined in coll…

Well your assumption is wrong. There was no defined severance, people are saying that Convoy should have paid severance anyway because its the “right thing to do” when laying off employees. And others are saying they couldn’t because of creditors coming first.

Re: Trucking startup Convoy closes operations with no buyer

#565
post #478

Earlier quoted context omitted.

This stuff doesn’t require the CEO or CFO either. Receivership doesn’t even require the active participation of the board, so yes there’s some benefit of keeping existing executives around but that’s often offset by the costs of doing so.

> Receivership doesn’t even require Cooperation of board/executives is not required but it is immensely helpful. "The easy way" vs "the hard way."

How would it possible help in this situation? The game is over and everyone knows exactly where all the money is. It will just be distributed back to the creditors and then remaining to the shareholders. Who needs the CFO for that? Basically anyone could run that process.

Re: Trucking startup Convoy closes operations with no buyer

#566
post #267

Earlier quoted context omitted.

And Elon hasn't been known to exaggerate greatly or lie, so this must be true.

Who knows if it was two days away from bankruptcy, but Tesla and SpaceX were very close to running out of money in 2008: https://www.businesstoday.in/amp/technology/news/story/elon-... Also where were you during 2017, 2018 period when the doomsayers (aka TESLAQ) predicted the same so often? So much so that this tweet became famous? https://x.com/elonmusk/status/980566116614291456?s=46&t=yN2X...

I don't dispute that they were close to running out of money, but what does "2 days" even mean in that context? It probably means that soon they would have needed to decide when to start the bankrucpty procedues or something.

Re: Trucking startup Convoy closes operations with no buyer

#567

Earlier quoted context omitted.

Severance IS wage

Why would you pay severance when declaring bankruptcy?

Obviously it depends on the jurisdiction. In countries with strong employees protections, redundancy payments have a high priority during administration.

Re: Trucking startup Convoy closes operations with no buyer

#568
post #548

Earlier quoted context omitted.

Given we can look back at history and see direct causal links between industrial action and subsequent improvements, there is no way to take this seriously. I have no doubt you're right that it correlates neatly with different income levels, but I find it comical that you think that addresses the issue. I also note that you claimed working hours as a normal good whose demand would rise with income but ignored the poi…

> but ignored the point that the demand far preceded the economic ability to bargain for it with money, and that the demand was not constrained by lack of money You don’t know what demand means in an economic context here. Ops point is that as wages increase, people aren’t going to accept 70 hour workweeks if they can get by on 40. > Given we can look back at history and see direct causal links between industrial act…

> You don’t know what demand means in an economic context here. Ops point is that as wages increase, people aren’t going to accept 70 hour workweeks if they can get by on 40.

Which misses the point that when these changes started being demanded and won people couldn't afford to walk away.

> Feel free to point them out and show how unions were required in every country to get the same thing.

Nice try, but that was not the claim I made, nor one I even agree with. The 8 hour working day was largely won by US unions, after which it became substantially easier to win elsewhere as the doom and gloom predicted by employers didn't materialise and reduced the perceived need to resist it.

With respect to US unions, there is plenty of material you can easily google, but you can start by looking at e.g. the 1835 Paterson textile strike, which was one of the first major ones, and which "failed" when employers only offered about half the reduction in working hours employers demanded, but it nevertheless gained them a significant reduction as a direct result of the strike.

> Union members were likely emboldened as pay increased because they could ride out strikes.

History largely shows the opposite. Workers coming to the cities facing lack of employment opportunities were relentlessly exploited, and were a major factor in the growth of labour unions. In the US you also saw major effects of actual salary drops in some cases, e.g. the Great Railroad Strike of 1877.

Union members risked life and limb and imprisonment early on because the conditions they were working in were horrific. Unions have softened and their membership has cratered as pay then increased because if anything better paid workers are less interested in disrupting what they already have and tend to be less interested in putting effort into it.

> At the same time, people could just get by on fewer shifts because pay increased. This creates downward pressure on required weekly hours (because many people to value their time), regardless of the union activities.

This is just entirely counterfactual. Taking fewer shifts wasn't generally an option on offer, and didn't become an option until decades into the fight to lower working hours.

> (it’s literally union propaganda)

It's literally true, whether you're pro union or not.

See e.g. the Bay View Massacre, when the Wisconsin National Guard fired at strikers demanding an 8 hour working day and 7 people died as a result. It is by no means the only incidence of US government or Pinkerton agents and others firing directly at strikers.

The reason May 1st is the international day for labour demonstrations are incidentally a direct after-effect of the Chicago Haymarket Massacre, also an outcome of the eight hour working day demonstrations. I gave the Bay View Massacre because it's a simpler one - not nearly as murky. Preceding the Haymarket massacre police murdered workers the day before. During the demonstrations at Haymarket, someone - who is unknown - threw a bomb, and so while the police ended up killing multiple murders, it's unclear how to assign blame. Several union organizers were then executed without any evidence they had anything to do with the bomb.

> But consider that many professions flourished without unions (tech, law, banks, engineering, etc). > > They are by no means requisite for improvements.

Yes, in roles that are either highly regulated and/or high skilled so there is a reasonable balance of supply and demand people can do well, yes. Nobody has claimed no improvement can happen without them, nor that there are no groups who won't do well without them, so that is irrelevant to the claims I've made.

Re: Trucking startup Convoy closes operations with no buyer

#569

Earlier quoted context omitted.

> paid comp to the execs for a full year IDK if Shone did things the most intelligent way, but the general story is not uncommon. Shareholders/creditors have a mess if the CEO and CFO walk out the door for their new job; it is financially beneficial for them to liquidate assets and shut the door. Shareholders/creditors don't have a mess when the engineer and a product manager walk out the door to their new job. That'…

Maybe they need something in bankruptcy law that requires the executives to stick around, at low pay, to do their jobs and unwind the company. After all, they're the ones who made it fail. Why should they be allowed to walk away? If a regular individual declares bankruptcy and then doesn't bother doing any of the required paperwork and legal stuff, saying the court needs to pay them top dollar for their time, things…

You mixed up a lot of things here. On practical side: execs, and accounting already legally must do paperwork, however shareholders want them to go well beyond that. And you can't force people to do job properly just by legally obliging them, otherwise Soviet Union would not fail.

On moral side: business in general (and startups especially) requires navigation between things many of which are unpredictable, and plenty are beyond your control. Also I've seen startups failing because of software bugs, and technical limitations. In this particular case, do you know about any obvious wrongdoing? If not you probably shouldn't auto-assigning blame on "them".

Re: Trucking startup Convoy closes operations with no buyer

#570
sucks for employees, but lets be honest - if you worked at a company of 1500 people, and you watched that number dwindle to 500 over the course of a year, unless you lived under a rock, you pretty much knew this day was coming.

Exec's can probably be faulted to waiting until the last minute/dollar to close up shop to see if they could pull a rabbit out of the hat - but it seems there were about 500 employees also hoping against all hope that said rabbit would be pulled.

Advice for employees - when the writing is on the wall, read it, and plan/act accordingly - best to start interviewing for a new job before everyone else from the same company, in the same area, is doing the same thing.

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