MIAMI -- With ride-sharing companies like Uber and Lyft gaining in popularity, a Miami Lakes company that provides old-school chauffeurs with luxury vehicles filed Chapter 11 reorganization.
Worldwide Transportation Services filed for protection from creditors in U.S. Bankruptcy Court in Miami on Jan. 26. Its attorney, Eyal Berger, stressed that the company was operating as usual and continuing to provide service to its clients.
Berger said the main reason Worldwide Transportation Services filed Chapter 11 was litigation costs. A handful of its drivers filed wage lawsuits against the company over claims they should have been paid like employees, not independent contractors, he said. The expenses from defending those lawsuits caused a liquidity crunch at the company, Berger said. Its cash flow from operations was otherwise fine, he said.
South Florida Business Journal article here