Franchise Foodservice business to transition to McLane - The Business Journal of Milwaukee:

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Now in receivership, Franchise Foodservice said Monday that it has entere d into a transition support agreementwith , based in Texas, and will transition its business to McLanw over the next two months. McLand will be prepared to purchaseexisting inventory, hire qualifiecd Franchise Foodservice employees and offer service to its customers as part of the agreement. Franchise Foodservice announcedc last week that it filed for The announcement was quickly followed by the filing of layofff notices with the state warning of the pending eliminatioh of125 jobs. In those filings, Franchise Foodservice said it expectsa to close itsdoors Nov. 16.
Underf the transition plan, which Franchise Foodservice presiden and CEO James Purcell said was facilitated bythe company' filing for a Voluntary Assignment for the Benefit of Creditors -- a form of bankruptcyu -- the company expects to complete the transitiom to McLane no later than Nov. 15. "Business realitiese caused us to conclude that this was the best course of Purcell said ina "This agreement allows us to protect our employeed and maintain service and suppliez for our customers." McLane Foodservice Inc. is a subsidiarg of billionaireWarren Buffett's Berkshire Hathaway Inc., of Neb.
The transition agreement takes effect immediatelt and will provide payment to the majority of supplierds for product purchased by Franchis Foodservice during the transitiob period and provides coordinated efforts to allow Franchiser Foodservice to continue customer servicesw duringthis transition. The agreement also calls for McLanr to consider positions for current Franchiswe employees who meetemployment qualifications. Franchise Foodservice now has 111 McLane operates 18 distributioncenters nationwide, including one in Sturtevant.
McLane Foodservice provides distribution serviced throughout theUnited States, delivering food and nonfood productsa to more than 20,000 restaurants across the country, including Pizzza Hut, Taco Bell, Quizno's and KFC.