UPS to close main Menlo hub
UPS said it would close the Dayton, Ohio, air hub of Menlo Worldwide Forwarding, the large heavyweight forwarder it acquired last December, in mid-2006.
The Dayton hub was a financial drain for Menlo, which could not get enough freight business to efficiently run the facility. UPS has one of the world’s premier package distribution networks. Shipments will now be handled by UPS’ main world hub in Louisville, Ky., or other regional sort centers.
The Atlanta-based integrated logistics provider said it will continue to operate a customer service center in Dayton.
“The decision to close the Dayton facility was a difficult one and was made after analyzing the significant redundancies that exist between the UPS and Menlo Worldwide Forwarding air networks,” UPS said in a statement. The company said it will be able to offer better service by integrating operations.
UPS paid $150 million in cash and took on $110 million in debt for the Menlo forwarding and customs brokerage operation. UPS likely will have to write off a loss on the Dayton hub.
UPS said it will provide severance packages and other assistance to employees who lose their jobs.