Yellow Roadway to Close USF Dugan in July

ellow Roadway said Monday it will close USF Corp.’s less-than-truckload unit USF Dugan in July.

USF Dugan will cease pickup operations as of July 8 and cease deliveries as of July 15, the company said.

Yellow Roadway, which finalized its $1.37 billion acquisition of USF Corp. May 24, said it would take one-time charges related to the closure and expansion of other USF units to fill the space.

Yellow Roadway Chief Executive Officer Bill Zollars said in a statement the move “will provide improved service to customers while increasing network efficiencies among the regional companies.”

Gary Pruden, USF Dugan’s chief operating officer, said in a statement on the company’s Web site that the decision to shutter the unit came after a “two-year strategic business review.”

USF Dugan customers in areas currently served by USF Bestway in Texas and USF Holland in the Midwest and Southeast can immediately begin switching their service to those units, the company said.

Effective July 11, USF Bestway will expand its service area into Arkansas, Louisiana, Mississippi, Oklahoma and parts of Kansas. USF Bestway has operations in Arizona, California, Nevada, New Mexico and Texas.

USF Holland, which now operates in the Midwest and Southeast, will expand into Missouri and parts of Kansas.

USF units New Penn Motor Express and USF Glen Moore will not be affected by the realignment, the company said.