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the staff of the Ridgewood blog
Paramus NJ, Paramus-based Coach USA is set to auction two of its bus terminals, located in Elizabeth and Paulsboro, after the private bus company filed for bankruptcy two months ago. The terminals are among eight properties up for auction, with the others located across the country. The terminals are being promoted for their “ample parking, storage, repair/maintenance” facilities, as well as their strategic proximity to airports and highways.
“These assets offer attractive rents, and the Elizabeth location is adjacent to the Port of Newark,” stated Spencer Ware, the chief restructuring officer at Texas-based CR3 Partners, which is managing the auction process.
A&G Real Estate Partners, a real estate advisory firm working with Coach USA, is handling the auction of these New Jersey properties along with six other terminals in Bakersfield, California; Landover, Maryland; Columbiana, Ohio; Fairview, Pennsylvania; Austin, Texas; and Houston, Texas. The deadline for bids is set for August 28, pending court approval.
Coach USA’s Struggles Since the Pandemic
Coach USA, like many transportation companies, has faced significant challenges in regaining ridership following the COVID-19 pandemic. According to court documents, the company’s ridership in 2023 was only 45% of pre-pandemic levels. This is considerably lower than regional transit agencies like NJ Transit, which has recovered approximately 80% of its ridership.
Despite a gradual rebound in revenues to nearly 58% of pre-pandemic levels by 2022, Coach USA’s operating expenses have surged due to rising fuel, insurance, labor costs, and other inflationary pressures.
NJ Transit Steps In
In response to Coach USA’s recent announcement that it would drop 20 bus routes amid bankruptcy, NJ Transit has stepped in to fill the void. NJ Transit, along with Academy Bus, will take over the affected routes starting August 17, ensuring that thousands of riders are not left stranded.
Academy Bus will operate the routes in Bergen and Passaic counties without changes to routes, schedules, or fares, while NJ Transit will cover the Hudson County routes using existing resources.
As Coach USA navigates its financial struggles, the auction of its properties and the intervention by NJ Transit represent critical steps in addressing the fallout from its bankruptcy.
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