Lee Food Service Closing; 90 jobs lost

ALTOONA, PA (Nov. 4, 2009)—Lee Food Service Inc., created in 2007 as part of a reorganization plan to enable W.S. Lee & Sons Inc. to emerge from bankruptcy, announced they are closing this week, to the suprise of clients and partners. The family-owned company's 90 employees will lose their jobs.

W.S. Lee, a 135-year-old company, filed for Chapter 11 bankruptcy protection in March 2006. The food supplier experienced trouble after landing a $250 million contract to supply the Pennsylvania Department of Corrections and other agencies.

Lee Food developed a five-year recovery plan and officials say sales were up last fall. Since then, the economic meltdown harmed the restaurant industry, Lee Food's sales dropped, and the company has been unable to restructure its debt.

Lee Food Service has been a major distributer to restaurants, health institutions and schools in the area for over 130 years.

President and CEO Robert Donaldson said they are now working with Careerlink and other sources to make sure their employees will be in good hands.

Donaldson said he will have more details of their voluntary liquidation on Friday.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Leadership

Restaurants bring the industry's concerns to Congress

Neary 600 operators made their case to lawmakers as part of the National Restaurant Association’s Public Affairs Conference.

Financing

Podcast transcript: Virtual Dining Brands co-founder Robbie Earl

A Deeper Dive: What is the future of digital-only concepts? Earl discusses their work to ensure quality and why focusing on restaurant delivery works.

Financing

In the fast-casual sector, Chipotle laps Panera Bread

The Bottom Line: The two fast-casual restaurant pioneers have diverged over the past five years, as the burrito chain has thrived while Panera hit a wall. Here's why.

Trending

More from our partners