MEMPHIS, TN (abc24.com) - Memphis-based Pinnacle Airlines has filed for Chapter 11 bankruptcy. Company leaders say they need to work on a turnaround plan.
The company wants to try to maintain business as usual, and filed court motions so that they can keep employees on the payroll and continue paying suppliers.
Pinnacle employs about 1,500 people in Memphis and almost 8,000 around the country. It flies regional jets on shorter haul flights to smaller markets with fewer passengers.
In 2010, Pinnacle moved its headquarters to One Commerce Square, a newly-renovated office tower in downtown Memphis. The company had considered relocating to Olive Branch, Mississippi, but the City of Memphis offered a multi-million dollar incentive package. The package included a 15-year property tax freeze on the company's new headquarters.
But in December, Pinnacle laid off 150 ground crew members at Memphis International.
With this latest announcement, the company president says he hopes Pinnacle Airlines can emerge from this as a "stronger, more focused company."