Industry News | September 24, 2007

Franchise Foodservice Transfers Business to McLane

Franchise Foodservice, Inc. (FFS), a quick-service restaurant distributor, announced today that it has entered into a transition support agreement with McLane Foodservice, Inc. and will transition its business to McLane over the next two months. The Carrollton, Texas-based McLane will be prepared to purchase existing inventory, hire qualified FFS employees and offer service to FFS customers as part of the agreement.

"Business realities caused us to conclude that this was the best course of action," says James D. Purcell, president and CEO of FFS. "This agreement allows us to protect our employees and maintain service and supplies for our customers. In no way does this decision diminish everything our company and our team of employees have accomplished over the past 10 years."

To facilitate the transition process, FFS made an Assignment for the Benefit of Creditors under Wisconsin law. Such an assignment simplifies and expedites the process to benefit creditors. FFS expects to complete the transition to McLane no later than Nov. 15.

FFS’s transition support agreement with McLane, a national foodservice distributor that is a subsidiary of Berkshire Hathaway Inc., takes effect immediately. The agreement provides payment to the majority of suppliers for product purchased by FFS during the transition period and provides coordinated efforts to allow FFS to continue customer services during this transition. The agreement also calls for McLane to consider positions for current FFS employees who meet employment qualifications. FFS currently has 111 employees. McLane operates 18 distribution centers nationwide, including one in Sturtevant, Wisconsin, near FFS headquarters.

"We commend FFS’s approach and commitment to its customers, employees, and vendors under these circumstances," says Susan Adzick, vice president of sales and marketing for McLane Foodservice. "We are pleased to be able to help ensure vendors and customers have their financial, product and service needs met going forward, and we think we can provide great employment opportunities for FFS staff."

Add new comment