“The fireworks that ensued would have made the Gucci family feel insecure”
With the Friendly’s family business the founders had differing strategies which created sibling conflict and led to the eventual sale of the business. You’d think that after selling your business for $164 million that you would be content and move on to your next venture.
One of the founders made the mistake of keeping personally entangled in the business in an outsider role. He didn’t agree with the changes and direction of the new ownership. So he bought back into the now public company and gained a voice at the table. His meddling with the business distracted the business management away from their strategy at a time when the industry was rapidly changing.
In addition the new ownership hired his brother back who had been originally at odds with him. This caused the situation to become even more personal and acrimonious.
Many will say you can’t fault him for wanting to continue his legacy even after the sale. His efforts however contributed to the failure and eventual bankruptcy of the business. Many founders have a tendency to want to chase their legacy. They want to leave a “mark” on something. But often that goalpost is moving. The Friendly’s founders built a successful business and sold at the top of their valuation. They couldn’t let go of the business and as a result they will be more remembered for a failed business.
In the end sibling rivalry and the inability to let go of the business were major reasons that brought this company down.
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