In a move that might make you wonder if anyone will miss it, Coach USA, the operator of Megabus and various other commuter bus lines in the US and Canada, has filed for bankruptcy protection in Delaware. The company is seeking to sell its assets and finally shed the weight of the debt it has been carrying since a 2019 private equity buyout. Let’s dive into the slow-motion train wreck—or bus wreck, if you will.

Coach USA, once the darling of budget-conscious travelers and non-stop WiFi seekers, was acquired by private equity firm Variant Equity Advisors for $270 million in 2019. At the time, everything seemed rosy. Then came 2020, which, for many companies, was just as pleasant as a missed connection in a blizzard. The COVID-19 pandemic decimated ridership by a staggering 90%. By 2023, ridership had only rebounded to 45% of pre-pandemic levels.

Higher interest rates and increased costs for basics like employee retention and fuel didn't help matters. It turns out, in a cruel twist, buses can't run on hopes and dreams. Coach CEO Derrick Waters has assured that buses will continue to run during the company’s bankruptcy—a statement likely met with collective indifference by those who’ve already found alternative means of travel.

Entering Chapter 11, Coach USA brings along a tidy bundle of $197.8 million in debt, including a sizable $37 million obligation on a CARES Act pandemic relief loan. With all the dexterity of a hire on 'Dr. Pimple Popper', the company plans to excise this financial burden through asset sales.

Coach USA operates in 27 locations in the US and Canada, maintaining a fleet akin to a small military at 2,070 buses and employing around 2,700 folks who presumably have a lot of time on their hands these days. It's not just Megabus on the block; brands like Dillon’s Bus Company and Go Van Galder are also part of the soon-to-be-ex-coach USA portfolio.

Interestingly, Coach entered bankruptcy with three sale agreements already in the bag, covering 16 of its 25 business lines. This plan, while sounding suspiciously organised for a company that let things fall apart so spectacularly, would preserve jobs for about 2,100 of the Couch’s fleet. The largest acquisition would be by Renco Group, which will take on the majority of Coach's assets and a charming $130 million in debt as well as certain union contracts.

Following close behind is Avalon Transportation, which will acquire bus lines in Atlanta and Western states along with some specialized tour bus divisions for a modest $14.8 million. Anyone looking for a double-decker bus? No? Perhaps ABC Buses will, as they are set to purchase 143 of these towering behemoths for $2.3 million. That’s less than what some people pay for a Manhattan apartment, and you can't even live in them—though truth be told, some days you'd probably wish you could.

So, as Coach USA undergoes what the company might call a 'strategic reorganization’ and what everyone else might term 'trying desperately not to go under', buses will continue to roll. Derrick Waters' promise of service continuity during this time brings a sigh of relief to thrifty travelers—or at least to any who haven’t discovered the joys of carpooling or ride-sharing apps.

In the end, one might ask: will anyone notice that Megabus has filed for bankruptcy? The buses will keep rolling (hopefully not belching smoke), and life will likely go on with fewer people crammed into seats next to strangers who may or may not respect the concept of personal space.

Coach USA's saga is a compelling reminder that even when everything seems to be falling apart, sometimes the wheels keep turning—whether anyone is paying attention or not.

Read more on the story and catch the full details on their next stops, if you’re genuinely curious.