YRC Worldwide, which has been closing terminals and selling others to raise cash, has solid its Overland Park, Kan., headquarters for $22.5 million to a group of Kansas City investors. The motive for the sale is similar to what YRC has been doing elsewhere in its operations. Desperate for cash to avoid running aground of its debt covenants, YRC is using the cash to "enhance its liquidity position," according to an e-mail from the company to the Kansas City Business Journal, which broke the story.
What do you do when almost nothing else has worked? Sell the building.
That's exactly what YRC Worldwide, the financially troubled $8.9 billion trucking conglomerate, has done with its Overland Park, Kan., headquarters.
In a sale-leaseback arrangement disclosed by the Kansas City Business Journal, YRC could gain as much as $22.5 million from the sale of its 30-year-old building on the outskirts of Kansas City.
The local Johnson County tax office lists the property's appraised value at close to $25 million, according to the business newspaper.
YRC won't be vacating the premises. Instead, it will lease back at least part of the building for an undisclosed fee.
On this score, YRC has torn a page out of the playbook of the International Brotherhood of Teamsters union (IBT). A few years ago, when the IBT finances were in a shambles, the union mortgaged its so-called "Marble Palace" headquarters with its million-dollar view of the U.S. Capitol building in Washington, D.C.