Following its Chapter 11 bankruptcy filing in June, Coach USA is reassuring customers that it continues to provide service across New Jersey and New York.
In a July 16 announcement, the Paramus-based transportation company said customers and commuters can continue to book trips through the Coach and Megabus apps and online at www.coachusa.com and us.megabus.com .
On June 11, the company cited repercussions of the pandemic as a catalyst for the bankruptcy filing.
“Following the COVID-19 pandemic, the company faced significant challenges, as ridership and demand in our industry have remained well below pre-pandemic levels,” the company posted online .
At that time, Coach USA said it had initiated court-supervised sales for its businesses and named the firms that agreed to purchase some of its bus lines, including The Renco Group Inc., Bus Company Holdings US LLC, and affiliates of AVALON Transportation LLC.
Variant Equity acquired Coach USA for approximately $271.4 million in April 2019. The company says it operates over 2,050 vehicles and employs more than 2,700 workers.
NJ Transit contract canceled
Coach USA also announced notifying NJ Transit it expects to cancel its contract with the agency by Aug. 16. Coach said it’s “taking steps to transition service and mitigate disruption across the 20 local transit lines in Bergen, Passaic and Hudson counties.”
The Passaic contract has been awarded to another operator, according to the company. Coach USA continues to provide service across all 20 lines. The company said it expects that service will persist when the lines are transitioned to new operators.
"We recognize the impact of transitioning the operations of a route on our people, as well as the customers and communities that rely on it, and we are doing everything we can to ensure continued service on routesinBergen,PassaicandHudsoncounties,” Coach USA CEO Derrick
Waters said in a statement.
“We have been proactive in communicating with New Jersey Transit and other interested parties with respect to these lines and others that we are continuing to serve,”
Waters added. “We are confident that the next operators of those lines will continue serving those communities.
Urging action
In a July 15 statement, issued the day before Coach USA announced the cancellation in a press release, Bergen County executives expressed concern over the move.
“I am deeply concerned over recent reports that Coach USA will prematurely terminate their agreement with NJ Transit, leaving the operation of several Bergen County bus routes in question,” Bergen County Executive Jim Tedesco said in a statement. “This sudden and inadequate notice from Coach USA is unacceptable and will significantly impact our residents, particularly those who rely on these routes for their daily commutes to work and school.”
Tedesco urged NJ Transit “to take immediate action to ensure a smooth transition for Bergen County commuters by either finding a new service provider or assuming the operation of the impacted Bergen County routes themselves."
Commissioner Chairwoman Germaine Ortiz echoed that sentiment, adding that it was “truly disheartening” to hear about the contract cancellation. She also urged NJ Transit to act “swiftly” to ensure uninterrupted service.
NJBIZ has reached out to Coach USA for a response to the Bergen County statement and will update this story accordingly.
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