The commercial truck industry has faced economic distress over the last year that has resulted in certain companies shutting down operations and going out of business, and in some cases, filing for bankruptcy protection.
Companies have blamed high amounts of debt obligations, rising costs from inflation and high interest rates for their financial distress.
Commercial truck companies that had severe difficulties and ceased operating include Nikola Corp. and Bollinger Motors.
Commercial truck makers cease operations
Nikola Corp. a pioneer in the development of battery electric and hydrogen fuel cell electric semi-trucks, filed for Chapter 11 bankruptcy on Feb. 19, 2025, and liquidated its assets.
Nikola’s recall of all of its BEV trucks at the beginning of the third quarter of 2023 to replace defective battery packs incurred significant expenses and $44 million in losses, which led to its bankruptcy filing.
Commercial electric truck manufacturer Bollinger Motors also shut down operations six months after emerging from receivership.
Bollinger Motors, which was founded in 2015, released its B1 SUV prototype for consumers in 2017 before later launching its commercial electric truck manufacturing in Oak Park, Mich., with its Bollinger B4 in September 2024.
The commercial electric truck maker’s financial issues led to it missing two payroll periods in November 2025 and ceasing operations on Nov. 21. The company’s website is no longer operational at last check.
Tonka International Corporation files for Chapter 11 bankruptcy to reorganize its business.
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Tonka International files for bankruptcy protection
And now, commercial trucks and heavy equipment dealer Tonka International Corporation filed for Chapter 11 bankruptcy for the second time in over five years to reorganize its business, as a glut in the used machinery market affected the company’s sales.
The company has no relation to the Tonka toy brand, which has been owned by toy company Basic Fun since 2019. Basic Fun, coincidentally, filed for Chapter 11 protection in June 2024, Inforuptcy reported.
Company filed for bankruptcy in 2020
Tonka International first filed for Chapter 11 protection on March 9, 2020, at the beginning of the Covid-19 pandemic, according to PacerMonitor.
The Plano, Texas-based debtor filed its Subchapter V petition in the U.S. Bankruptcy Court for the Northern District of Texas on Jan. 15, listing up to $50,000 in assets and $100,000 to $500,000 in liabilities, according to RK Consultants.
Tonka International is a licensed and bonded wholesale dealer, specializing in the wholesale distribution of commercial trucks, trailers, boats, cranes, excavators, and heavy equipment, serving the mining, energy, and construction sectors, primarily in the North Texas Region.
Reduced demand for older trucks and equipment
The company, which was founded in 2013, manages a diverse inventory of used equipment, but recent shifts toward Tier 4-compliant engines and digital telematics have reduced the demand for older units in its fleet, according to a RK Consultants bankruptcy alert.
Reduced demand is also a result of a slowdown in the trucking sector that the industry refers to as “The Great Freight Recession.”
The trucking industry has been stuck in a sustained downturn since mid-2022 in part due to the supply chain crisis experienced during the Covid-19 pandemic. While the market isn’t continuing to decline, it’s also not rebounding as quickly as hoped, Wex reported.
“We’re not in recessionary territory in the traditional sense because we’re not on the downswing,” American Trucking Association economist Lindsay Bur told Wex. “But we haven’t seen the strong upswing or return to seasonality that people were expecting.”
Tonka, which faced volatility in the Texas oil and gas sectors, will address legacy liabilities and non-dischargeable litigation claims dating back to its previous bankruptcy restructuring.
Tonka International’s products:
- Commercial trucks
- Trailers
- Boats
- Cranes
- Excavators
- Heavy equipment
The company has served companies across the U.S. and internationally since it established itself and specializes in helping companies sell their pre-owned trucks and heavy equipment without overhead, guesswork, or exposure that comes with auctions or online marketplaces, according to Tonka’s website.
The company manages every part of a sale transaction, including valuation, negotiation, secure wire transfers, and logistics. The company does not offer contracts or charge fees.
More bankruptcies:
- 64-year-old furniture store franchisee files Chapter 11 bankruptcy
- Golf legend’s iconic brand files for Chapter 11 bankruptcy
- Major health services provider files for Chapter 11 bankruptcy
Tonka connects businesses throughout North America that own trucks and equipment with businesses that need them. All funds pass through Tonka’s accounts, documents are reviewed and confirmed, and every transaction is back by the company’s accountability as a licensed wholesale dealer.
The company operates as a intermediary, buying machines and selling them as a direct transaction, from seller to buyer by coordinating the entire process.
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