Sudden shutdown of Schneider final-mile unit leaves furniture shippers scrambling for options
When truckload and logistics giant Schneider National Inc. (NASDAQ:SNDR) acquired less-than-truckload (LTL) and truckload carrier Watkins & Shepard Trucking Inc. and final-mile and IT provider Lodeso Inc. in June 2016, it envisioned penetrating the business-to-consumer e-commerce category with a holistic, â€œfirst-to-final-mileâ€ shipping service for furniture and carpeting orders.
The vision died August 1 when Schneider said it would immediately halt the unitâ€™s operations due to what the company called results that were â€œsignificantly below expectations.â€ The unit struggled mightily despite ongoing investments, the most recent being in mid-April when Schneider added middle-mile capabilities to connect the networkâ€™s multiple terminals. The Green Bay, Wisconsin-based concern said the unit lost $26 million in the first half of 2019 and was on track to lose another $9 million in the third quarter. The company will take $50 to 70 million pre-tax restructuring charges through the end of the year, apart from a one-time, $34.6 million goodwill impairment charge in the second quarter.
Schneider National cuts 85 Green Bay positions
Schneider National provided formal notice to the state it’s eliminating 85 jobs in the Green Bay area.
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