McLane Takes Over Franchise Foodservice

Now in receivership, Franchise Foodservice of Oak Creek, WI, said today that it has entered into a transition support agreement with Carrollton, Texas-based McLane Foodservice and will transition its business to it over the next two months. McLane will be prepared to purchase existing inventory, hire qualified Franchise Foodservice employees and offer service to its customers as part of the agreement.

The Business Journal of Milwaukee reported last Thursday that Franchise Foodservice Inc. has filed for receivership and plans to permanently close its operations in Oak Creek in November, putting 125 employees out of work.

According to that story, the company reported it is facing unforeseen circumstances that occurred while the company was actively seeking capital that it believed would keep the business operational. The company filed for receivership in Milwaukee County Circuit Court on Tuesday, Sept. 18. Michael Polsky, who has been named the company's court-appointed receiver, said that the closure of the business is expected to be permanent.

The receivership announcement was quickly followed by the filing of layoff notices with the state warning of the pending elimination of 125 jobs.

Under the transition plan, which Franchise Foodservice President and CEO James Purcell said was facilitated by the company


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