ALTOONA, Pa. (AP) — The successor to a bankrupt food-supply company is closing in central Pennsylvania, meaning 90 people will lose their jobs.
Lee Food Service Inc., of Altoona, was created in 2007 as part of a reorganization plan to enable W.S. Lee & Sons Inc. to emerge from bankruptcy.
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.
