An Iconic Business In California Now Makes An Unexpected Closure

April 15, 2024

An iconic business in California now makes an unexpected closure of all of its 62 locations for good, disappointing workers and customers.

With the increase of minimum wage for fast food workers in California, came the closure of a beloved ice cream store, reports The-Sun.

On April 1, a Fosters Freeze location in Lemoore, California — about three hours north of Los Angeles — shut down.

That happened to be the same day the new minimum wage, which is now $20 an hour rather than $4, kicked in for fast food workers, reports the outlet.

“Some employees thought that the closure was an April Fool’s joke.”

“I was so caught off guard. We had no type of notice, no type of warning either. I mean the owner had told me Happy Easter,” Assistant General Manager Monica Navarro told Fox affiliate KMPH.

Another former employee had a similar reaction.

“We had gotten a text in the group chat that we were shutting down, and I completely thought it was an April Fools joke,” former employee Jason Boado told the outlet.

However, it was not a joke.

“Last thing I ever wanted was to close down,” Loren Wright, the owner of the Fosters Freeze, told the outlet.

“By Friday night I knew I was most likely not gonna be able to stay open but I didn’t want to ruin their Easter Sunday.”

Navarro drove to the store and was met with Wright handing out final paychecks.

The former assistant manager told the outlet that her boss had blamed the closure on the increase, but he didn’t tell anyone the restaurant would be shutting down.

She was excited about the wage increase but now sees that it could be an issue.

“Please be nice to your fast food workers,” said Navarro.

“They’re going to be getting their hours severely cut running small, small shifts. They’re going to have people yelling at them for the menu increases.”

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Also Read: Three Massive Bank Branches Are Now Closing in California

Other Economy News Today

A giant US company now declares an unexpected bankruptcy, resulting in the closure of two of its subsidiaries and mass layoffs.

Major shipping company Universal Logistics Holdings (ULH) will permanently close two of its subsidiaries and lay off 677 employees, notices filed with the State of Michigan said, according to FreightWaves.

The Warren, Michigan company’s subsidiary Universal Dedicated of Detroit will close and lay off 230 truck drivers, while Logistics Insights Corp. will shutter and lay off a total of 447 workers, including 164 warehouse workers, 212 forklift operators, 26 dock workers and 45 clerical employees.

Universal Logistics gave no reason for shutting down the two subsidiaries, reports TheStreet.

Logistics Insights provides value-added logistics solutions to the automotive, aerospace, manufacturing and retail industries, as well as dedicated truckload, expedited and freight forwarding services to customers throughout North America, according to the Universal Logistics website.

Universal Dedicated of Detroit operates an auto parts warehousing and logistics facility. Both subsidiaries are based in Detroit.

Parent company Universal Logistics Holdings, whose subsidiaries employ about 10,000 workers in total, is a holding company which owns subsidiaries that provide a variety of customized transportation and logistics solutions throughout the United States and in Mexico, Canada and Colombia.

Its subsidiaries offer a broad array of supply chain services, including truckload, brokerage, intermodal, dedicated and value-added services.

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Also Read: A Massive Grocery Chain With 400 Stores Is Now Closing

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