After sale, Brigham's can't cover entire tab

Albert Gordon opened his mail Monday expecting to find a check from Brigham's Ice Cream, payment for the corn syrup the ice cream maker bought from his firm, Savage & Co. Instead, he received a letter stating he would not get paid.

Brigham's - which last week sold off its ice cream line and its restaurants in separate transactions for undisclosed amounts - acknowledged yesterday it is not paying some 170 creditors.

In the one-page letter to Gordon, Brigham's chief executive officer Robert P. Wexler wrote: "The funds received from the sale were substantially less than necessary to satisfy Brigham's secured creditors in full. As a result, there will be no distribution available for the unsecured creditors."

On Friday, Brigham's said it sold its ice cream line to HP Hood LLC, a Lynnfield dairy firm, and its 28 retail stores to Deal Metrics LLC of Baltimore after a four-year turnaround effort by a local buyout group failed.

The 94-year-old chain had struggled to remain viable as a regional ice cream maker in a world of global and boutique brands. The company had sought help from Tron Group, a Boston private equity firm, to help strategize and explore ways to make the company profitable. Wexler, Tron's chief, became Brigham's chief executive in May.

Also in May the company confirmed it had hired an investment banking firm, Tully & Holland Inc., to orchestrate a merger or sale. At the time, the company cited the rising cost of ice cream ingredients, fuel, and utilities.

Brigham's had difficulty selling the company as a unit, and had to break it apart to facilitate the sale to two buyers.

Brigham's spokesman Doug Bailey said it is typical in rescue situations for companies to not meet conveyances on loans.

"There just wasn't enough money left after paying off the bank," he said.

Brigham's would not disclose how much it owes creditors, including suppliers and contractors, its cleaning company, and the graphic artists responsible for promotional material.

Gordon, whose Framingham firm has supplied Brigham's for more than 20 years, said he is owed $3,687 for corn syrup delivered since October. He spoke with the company, but was unable to retrieve his money. Gordon has since consulted a lawyer and plans to take his case to small-claims court, but doesn't expect to prevail.

"I would have hoped Brigham's would have supported those reliable vendors that have been with them for years," he said.

Angel Jennings can be reached at ajennings@globe.com.