Wisconsin Trucking Company Shuts Down After Bankruptcy and Failed Sale

Sparhawk Trucking is liquidating equipment and laying off 74 employees, including 42 truck drivers, after failing to find a buyer

A family-owned trucking company in Wisconsin is shutting down after filing for bankruptcy and failing to find a buyer. Sparhawk Trucking, based in Wisconsin Rapids, Wisconsin, began winding down its operations on September 8, 2026, with equipment liquidation and employee layoffs already underway.

The company filed for Chapter 11 bankruptcy in March 2026 as it attempted to reorganize its finances and continue operating while searching for a buyer. That effort ultimately failed, leading the company to begin a permanent shutdown.

The closure affects both Sparhawk Trucking and related company Sparhawk Truck and Trailer.

74 employees are set to lose their jobs

According to a notice filed with the Wisconsin Department of Workforce Development, 74 employees will be laid off as the company winds down.

The affected workers include:

• 42 truck drivers
• 16 shop employees
• 16 office employees

The first layoffs began on September 8, when seven office workers and 13 shop employees were dismissed. The remaining layoffs are expected to be completed in November 2026, with the positions described as permanent.

Sparhawk also notified 38 independent owner-operator drivers about the planned shutdown. Those contractors were notified as a precaution as the company prepared to end operations.

Sparhawk owes $10.1 million to WoodTrust Bank

The trucking company entered bankruptcy with significant financial obligations.

Court and bankruptcy-related reports indicate that Sparhawk owes approximately $10.1 million to WoodTrust Bank, one of its major creditors.

The company’s financial problems came amid a difficult freight market, equipment issues and legal disputes. The company had previously attempted to sell non-core assets while continuing to search for a buyer.

The Chapter 11 case initially allowed the business to keep operating while a potential acquisition was pursued. However, no buyer was found.

Equipment liquidation marks the beginning of the shutdown

With the sale effort unsuccessful, Sparhawk moved from restructuring to liquidation.

The formal wind-down began with the sale and liquidation of equipment, followed by the reduction of the workforce. The company is expected to continue the shutdown process through November.

The development ends the operation of a trucking company that had served the Wisconsin Rapids area for decades.

Earlier bankruptcy documents show that Sparhawk had operated a substantial fleet. A court decision from April noted that the company’s transportation and logistics operations had included approximately 200 trucks and 1,000 trailers in 2023.

Truck drivers are among the workers affected

The closure is particularly significant for company drivers because 42 truck drivers are included in the 74 employee layoffs.

The company had continued recruiting and operating during the bankruptcy process while a buyer was being sought. Its website had promoted driver positions, competitive pay and home-time options before the shutdown process began.

The additional notice sent to 38 owner-operators means the shutdown could affect even more drivers connected to Sparhawk’s operation, although they are independent contractors rather than employees.

Another trucking company affected by the freight downturn

Sparhawk’s closure comes as other U.S. trucking companies have faced financial pressure amid changing freight-market conditions.

Trucking Dive reported that the company’s financial problems were influenced by the freight recession, equipment issues, a railroad-related lawsuit and other difficulties. Other carriers have also suspended or ended operations during 2026.

For Sparhawk, the attempt to reorganize under Chapter 11 and find a buyer was not enough to keep the company operating.

The shutdown that began in September is now expected to continue through November, when the remaining layoffs are scheduled to be completed.