Former Celadon affiliate 19th Capital to close, terminate 199 workers

19^th Capital Group, an asset financing and fleet management company formerly associated with Celadon Group Inc., has announced it plans to close its facility at 9702 E. 30^th St. in Indianapolis, eliminating 199 jobs.

The company owns and manages Quality Co., formerly a Celadon subsidiary.

On Wednesday, 19^th Capital notified the Indiana Department of Workforce Development by letter that the company will begin to wind down operations on or after March 27, with most layoffs happening during a 14-day period that begins April 27.

“When the facility is closed, 199 employees will be permanently laid off,” 19^th Capital’s letter to the state says.

The list of affected positions ranges from sale reps and accounts receivable analysts to truck maintenance workers and drivers.

A phone call to 19^th Capital’s general counsel, James Zender, was not immediately returned Thursday.

In 2015 Celadon sold a portfolio of semi-tractors and leases to 19^th Capital Group LLC, which at the time was a joint venture in which Wayne, Pennsylvania-based equity firm Larsen MacColl Partners held a majority interest. Celadon and its executives held a minority-ownership stake.

In December 2016, Celadon terminated that joint venture and formed a new joint venture with Toronto, Canada-based Element Fleet Management.

Celadon’s auditor raised questions about the transactions in May 2017, setting off a cascade of actions that led to a criminal investigation of Celadon and charges filed against several executives. Celadon filed for bankruptcy and ceased operations in December.

In October 2018, Element announced it was purchasing 100% of the ownership of 19^th Capital and planned “to undertake an orderly run off of 19^th Capital’s assets over the next 36 months.”

In its 2019 financial report issued on Tuesday, Element said it began working to sell off 19^th Capital late last year. The effort attracted nearly 50 potential buyers but Element could not come to acceptable terms for a sale, the company said.

Given the deterioration in the truck market, Element said it now plans to accelerate its liquidation of 19^th Capital’s assets, “immediately reducing the scale of 19^th Capital operations and engaging with third-party lenders.”

In the earnings report, Element President and CEO Jay Forbes described 19^th Capital as an “ill-fated and costly investment.”