Things began to change when Sedutto’s was owned by Schrafft’s. By the early 1990s, the plant ceased to operate, and Happiness House employees arrived to work one morning only to find the factory closed for good. It came as little surprise to some of them, who predicted it several months prior, when restaurants that once proudly served Sedutto’s were now cancelling accounts.
The assets of the Schrafft’s company (which included the Sedutto formulas, trademarks and equipment) were sold to Calip Dairies Operating Co. in Ronkonkoma, New York, who manufacture the famous Dolly Madison brand.
CoolBrands International Inc. sold Calip Dairies, Inc. to an undisclosed third party. However, the distribution agreement with Calip Dairies, pursuant to which Calip Dairies distributed CoolBrands' products to certain customers in the New York Metropolitan area, remained in effect in accordance with the terms of the agreements that were in effect prior to the sale.
