Davis Express Files Chapter 11 Bankruptcy: Iconic Florida Reefer Carrier Closes After 44 Years

Davis Express, Inc., a family-owned refrigerated trucking company headquartered in Starke, Florida, announced in mid-April 2025 that it would cease operations and pursue Chapter 11 bankruptcy protection as of April 30, 2025. Established in 1981, the carrier grew to operate a fleet of 160 trucks and 400 trailers, serving customers across Florida, Georgia, Alabama, and South Carolina. Over its four-plus decades, Davis Express built a reputation for reliable refrigerated service, transporting produce, meat, dairy, and other temperature-sensitive commodities

Background and History

• Founding and Growth (1981–2019):
  Jimmy Davis founded Davis Express in Starke, Florida, in 1981 as a two-truck operation focused on local produce hauls. By the late 1990s, the company had expanded into long-haul regional service, investing in state-of-the-art reefer trailers and cultivating relationships with major supermarket chains throughout the Southeast. By 2019, Davis Express had grown to 160 power units and employed 140 drivers, operating 24/7 to meet surging demand for fresh and frozen goods.Family-Owned Culture:
  Throughout its history, Davis Express emphasized a family-first culture, offering competitive pay, full benefits, and profit-sharing incentives. Drivers who stayed beyond three years could participate in a deferred compensation plan, and mechanics were cross-trained to handle both reefer units and chassis maintenance. Local community involvement was also a hallmark: the company sponsored youth sports leagues in Starke and contributed to the North Florida Food Bank for nearly two decades. Freight Market Contraction (2023–2025):
  Since early 2023, the refrigerated sector experienced steep rate compression. According to President Jimmy Davis, reefer rates remained flat or even decreased as shippers leveraged national contracts and alternative carriers emerged. Meanwhile, operating costs—including fuel, insurance, and labor—continued to climb. By Q1 2025, Davis Express reported unprofitability for three consecutive quarters, with EBITDA margins dipping below –8%.

  Rising Operating Costs:

  • Fuel and Equipment: Diesel prices spiked 15% from 2023 to 2025, driven by refinery chain disruptions and increased global demand. Additionally, mandatory emission upgrades for 2010+ model trucks added an incremental $15,000–$20,000 per unit, which smaller family fleets like Davis Express struggled to finance.nsurance and Litigation: The carrier faced mounting liability insurance premiums—up 25% year-over-year—driven by a sharp rise in freight litigation. As Jimmy Davis noted, “Plaintiff’s attorneys have increasingly targeted the trucking industry; every trip risks a multimillion-dollar suit.

    Chapter 11 Filing Details

    • Bankruptcy Court Filing:
      On April 18, 2025, Davis Express filed a voluntary Chapter 11 petition in the U.S. Bankruptcy Court for the Middle District of Florida (Case No. 8:25-bk-01324). The filing listed total liabilities of $18.2 million and assets of $12.7 million, including receivables from major grocers, 160 power-unit chassis and trailers, and a 50-bay maintenance shop in Starke. Secured creditors include First Federal Equipment Finance ($6 million secured claim) and State Bank of Florida ($2.3 million for real-estate collateral).

      Objectives of Restructuring:
      The Chapter 11 plan aims to:

      1. Renegotiate Secured Debt: Seek reduced principal amounts and extended maturities on equipment loans, freeing up $1.2 million in annual debt service.

      2. Terminate Unprofitable Contracts: Exit three sub-par service contracts—two with small food-service distributors and one with a national burger chain—collectively losing $250,000 annually.

      3. Sale of Underutilized Assets: Auction off 25 older Columbia Refrigerated trailers (model years 2010–2012) expected to fetch $1.8 million in aggregate.

      4. Workforce Reduction and Lease Renegotiations: Consolidate terminal space in Starke, reducing monthly rent from $45,000 to $28,000 under a new lease, and lay off 40 office staff.

         Impact on Employees and Customers

         • Employee Layoffs and Benefits:
           The WARN notice filed on April 16, 2025, forecasts 117 driver layoffs (effective June 15) and 29 support-staff layoffs (July 31), including a phased shutdown of the maintenance shop. A total of 146 employees will lose their jobs by mid-June, while 14 mechanics will remain on a skeleton crew to process asset sales until August 31. Until their layoffs, Davis Express will honor all payroll and benefits through the June 15 pay period.

         • Customer Contract Terminations:

           • Major Supermarkets: Contracts with Southeast grocery titans—Publix and Walmart’s Tallahassee DC—will formally end on May 30, 2025.

           • Regional Distributors: Smaller foodservice contracts will be automatically assigned to lenders’ restructuring service providers.

           • Shipper Obligations: Customers currently behind on $3.4 million in receivables have been given 60 days to settle outstanding invoices, or risk forfeiture of refrigerated inventory in terminal yards.The closure and bankruptcy of Davis Express mark the end of an era for one of Florida’s most enduring refrigerated carriers. After weathering four decades of industry cycles, the company succumbed to a perfect storm of rate compression, rising operating costs, and tariff disruptions. While the Chapter 11 filing provides a pathway to restructure debts and potentially relaunch a smaller fleet, it also highlights systemic challenges facing mid-sized carriers nationwide. For drivers and industry stakeholders, Davis Express’s struggles serve as a cautionary tale: in today’s volatile freight environment, adaptability and financial resilience are more critical than ever.