Florida court records reveal lenders advised R&R Family of Companies to shut down before its collapse, with carriers hauling freight and unpaid invoices piling up. A lawsuit filed in January alleges R&R was insolvent and in default while continuing operations. The company had accumulated approximately $65 million in unpaid trade payables by late 2025.

Lenders extended an $85 million revolving credit line and a $3.7 million term loan to R&R in 2022, secured by borrower assets. Court records indicate R&R reported $25.9 million in net operating losses for 2025, potentially understating expenses. By late 2025, the company had accumulated approximately $65 million in unpaid trade payables.

Huntington recommended an orderly wind-down in December 2025 due to lack of liquidity, but R&R refused and continued operations. The company hired a turnaround firm, which proposed a restructuring plan requiring $25 million in new capital. Despite lenders’ objections, operations continued as financial troubles deepened.

A lawsuit alleges R&R founder Richard S. Francis transferred ownership of a $10.4 million Florida property to himself personally, allegedly to shield it from creditors. The plaintiffs claim the transfer constituted a default under loan agreements. Huntington is seeking to void the transfer and recover damages. The case remains pending in Florida court.

R&R Family of Companies collapsed suddenly, leaving drivers stranded and payments unpaid. Employees reported operational strain and financial stress leading up to the collapse. The lawsuit sheds light on why invoices went unpaid and the challenges faced by unsecured creditors. The company did not respond to multiple requests for comment, and no bankruptcy filing has been confirmed.

Read more at Yahoo Finance: Lawsuit alleges R&R Family of Companies continued operating while insolvent