Universal Logistics Holdings ended operations of its Universal Capacity Solutions brokerage Friday, according to a securities filing.
The company told workers some 112 would be terminated prior to the shutdown, and about 13 will remain until Sept. 13.
The move, which includes some $8 million to $10 million in estimated pre-tax charges and future costs, was done so the parent company could focus on its highest priorities, the filing said.
The subsidiary provided TL, international, drayage, intermodal and additional services.
The downsizing comes as Universal Logistics navigated a mixed environment. The company previously reported its Q2 operating revenue increased 12% to $462 million, thanks in large part to the securing of a specialty development project.
But its company-managed brokerage segment had a $2.2 million loss and intermodal segment had a $8.3 million loss.
The Nashville, Tennessee-based subsidiary was founded in 2005, provided capacity for over 800 customers and had a network of over 15,000 contracted carriers, according to its LinkedIn page.
Universal Logistics has dozens of subsidiaries, and its Universal Development of Tennessee subsidiary on Aug. 12 executed a deal with Ford to construct a 1 million square foot warehouse and distribution facility to support its next-generation electric truck.
