US bus company Coach files for bankruptcy to sell its business

Coach USA, the operator of Megabus and other commuter bus lines in the US and Canada, has filed for bankruptcy protection. The company aims to sell its assets and reduce its debt, which was accumulated during a private equity buyout in 2019. The COVID-19 pandemic severely impacted Coach’s business, leading to a 90% decline in bus ridership in 2020 compared to the previous year. Although ridership has partially recovered, it remains significantly below pre-pandemic levels. Coach CEO Derrick Waters reassured customers that bus operations would continue as normal during the bankruptcy process. The company entered bankruptcy with substantial debt and unpaid obligations. It has three sale agreements in place, subject to potential better offers, which would cover a significant portion of Coach’s business lines and preserve jobs for many employees.