The trucking industry's third-largest less-than-truckload (LTL) carrier Yellow Corp stopped operations on Sunday afternoon and Teamsters Union, which represents the company's workforce, said it had been notified of a pending bankruptcy filing.

"Today's news is unfortunate but not surprising. Yellow has historically proven that it could not manage itself despite billions of dollars in worker concessions and hundreds of millions in bailout funding from the federal government. This is a sad day for workers and the American freight industry," Teamsters General President Sean M. O'Brien said in a press statement released early Monday.

The fifth-largest transportation company in the U.S. faced a massive $1.3 billion debt, with loans maturing next year.