CHESTER- Coach USA, the operator of Megabus and other commuter bus lines throughout the U.S. filed for Chapter 11 bankruptcy protection in Delaware this week.
One of Coach’s primary services is shuttling commuters from throughout the Hudson Valley region to New York City and transporting tourists to destinations such as the Woodbury Common Premium Outlets.
“As we move through this process, our top priority remains safely carrying the millions of passengers who choose our buses each year and working closely with our valued contract customers and transportation agency partners,” said Derrick Waters, Chief Executive Officer of Coach USA. “We appreciate the dedication of our employees to operating with safety as a priority and serving our customers and our communities.”
Buses will continue to run as normal during the company’s bankruptcy. As part of the court filing, The Renco Group will assume the debts and assets of Coach, preserving jobs.
Coach ran into financial issues during the COVID-19 pandemic with ridership declining 90 percent from 2019 to 2020. While ridership levels have rebounded only to a fraction of the pre-pandemic levels.
Coach entered Chapter 11 with $197.8 million in debt, including $37 million due on a pandemic relief loan under the Coronavirus Aid Relief & Economic Security (CARES) Act, and at least $134 million in other unpaid obligations, including trade debts.
“Our top priority remains safely carrying the millions of passengers who choose our buses each year and working closely with our valued contract customers and transportation agency partners,” Waters said.
