How will Coach USA's bankruptcy, sale impact Rockland commuters?
NEW CITY ‒ A bus company that takes hundreds of commuters across the Hudson River into New York City has filed for bankruptcy protection, but officials doubt the business dealings will affect services.
Coach USA, one of the nation's largest bus companies, is looking to sell its bus lines in agreements with Bus Company Holdings US, an affiliate of the Renco Group, Inc. The lines include those in Rockland, Shortline routes, and 10 additional lines.
The Paramus, New Jersey-based company claims it has fallen on hard times since the COVID-19 pandemic. Dan Rodriguez, vice president of public affairs for Coach USA, said the company has struggled to regain ridership, not unlike the fiscal challenges experienced around the country by transportation companies and subsidized agencies. NJ Transit anticipates a nearly $1 billion deficit in 2026.
Rodriguez said Coach USA's priority is to service its customers during the sale of assets. The company has been in contact with Rockland County, but Rockland contracts with another company to run its bus system.
County Executive Ed Day said Coach USA's financial troubles will not affect the county's Transport of Rockland bus services. TOR takes commuters across Rockland, linking up with Clarkstown Mini-Trans and regional transit services such as the Hudson Link, Rockland Coaches (Red & Tan), Short Line, and NJ Transit trains.
Day said that while Coach USA's sales plan includes the Hudson Transit (Shortline) and Rockland Coaches divisions, "at least for the foreseeable future Coach USA is not planning any changes to the existing bus service schedules, staff, management, or operations for both Shortline and Rockland Coaches."
The potential sales could mark the third time in the past 30 years that these bus services are being acquired without service being interrupted, the county said.
Day said "our expectation is Coach USA will continue to provide uninterrupted service to the residents of Rockland County.”
Legislator Friedman concerned for commuters
Legislator Joel Friedman, D-Chestnut Ridge, said Rockland commuters should become a priority as they depend on Coach USA every day to get into New York City and New Jersey.
Friedman, who chairs the Legislature’s Special Committee on Transit, said he is concerned commuters could be left stranded.
“For decades, Rockland commuters have relied on Coach USA to get to work and home again, but now we are learning the company has filed for bankruptcy and intends to sell its Rockland Coaches and Shortline bus services to a new owner,” Friedman said. “Any interruption in service could spell disaster for the Rockland commuters who have almost no other way to get to work.”
More: Coach USA bus company files for bankruptcy. How will it impact NJ riders?
Coach USA outlines its financial difficulties
Coach USA's roots in the bus industry are more than 100 years old. The company now has 25 business segments, employs about 2,700 people, and operates about 2,070 buses across the U.S. and Canada. The company's operations include charter, airport shuttles, and scheduled route services.
Coach USA's June 11 statement said the company filed voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware to “facilitate sale processes to preserve jobs, ensure continued service and maximize the value of its businesses.”
The company states it has entered into asset purchase agreements with Bus Company Holdings US.
“Sadly, it appears that we are seeing the end of the Coach USA company,” Friedman said. “They have a duty to ensure all services are maintained until – and if – these sales actually take place."
Friedman said he's concerned that any decline in bus service will convince people to stop commuting into Manhattan, further reducing revenues to the bus company and increasing the problems confronting NYC due to fewer overall workers returning to their offices since the pandemic.
“Coach needs to provide a plan for how bus service will be maintained before they can be allowed to walk away from providing this vital mass transit function,” Friedman said.
North Jersey's Colleen Wilson contributed information to this report
Steve Lieberman covers government, breaking news, courts, police, and investigations. Reach him at slieberm@lohud.com Twitter: @lohudlegal
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This article originally appeared on Rockland/Westchester Journal News: Coach USA bankruptcy, sale shouldn't impact Rockland commuters
