Cannon Express? Bankruptcy Dismissed

The bankruptcy of Cannon Express Inc. was dismissed on June 8 by the Western District of Arkansas’ U.S. Bankruptcy Court. The Springdale trucking firm closed its doors for good on April 30 after several attempts to stay afloat.

Cannon Express filed for Chapter 11 bankruptcy protection on Dec. 9, listing $33.6 million in secured debts and less than $50,000 in assets. Then on Feb. 24, a motion was filed to dismiss or convert the case from Chapter 11 to Chapter 7.

Dean Cannon, former president and CEO of the firm, said he doesn’t know what will happen next. In 2002, the firm hired CFOex Inc., a transportation management company in Knoxville, Tenn., as an adviser to try to turn the troubled trucking company around.

Cannon resigned from the company upon CFOex’s recommendation.

In May 2003, he sold controlling interest in the company to Arizona Diversified Equity of Phoenix.

“It looked to me like on April 30th the lights went out,” Cannon said. “They scattered to the four winds.”

He said the company that bears his name still owes him money but declined to say how much. Cannon’s former facilities are temporarily leased to the Federal Emergency Management Agency, which has been working on relief efforts for area floods that occured in April.