United Road Towing Inc., the nation’s largest towing company, has filed for chapter 11 bankruptcy protection, along with more than two dozen affiliates, the Wall Street Journal reported yesterday. United Road is going up for sale in bankruptcy, with an auction planned before the end of March. Owned mostly by Medley Capital Corp. and Milestone Partners II LP, United Road said its decision to file for bankruptcy was driven largely by nonfinancial reasons, including a lawsuit involving the competition rights of former executives and a class-action case from people whose cars were towed without their consent. Diving prices for scrap metal and lack of capital for marketing and equipment purchases also contributed to the decision, court papers say. United Road lost the class action when it went to trial in 2015, and the company filed for bankruptcy protection just as the $5 million judgment was scheduled to become final. The chapter 11 filing will halt efforts to collect the judgment.
