The REAL History of Newport Creamery — Protests, Scammers and Awful, Awfuls

The REAL History of Newport Creamery — Protests, Scammers and Awful, Awfuls

The history of Newport Creamery is not all ice cream and burgers, “The Newport Creamery Way.” It is a far deeper story of expansion, politics, scams, and near extinction.

The beloved Rhode Island brand is at a crossroads. Its history is often a reflection of the state’s history over the past 100 years.

Wins and losses. Hard work by its workers and some scoundrels who try to profit.

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Nearly 100 Years

Over the past century, the company has had four principal owners — the founding family, The Rectors, who were intertwined with Newport’s own history.

The company was started as a dairy company in 1928 on Van Zandt Avenue.

The dairy operation was later sold off, and the focus was on Newport Creamery Milk Bars — the retail side of the business.

The Rectors owned the company until 1999, when Robert Swain purchased the company.

Swain proved to be the antithesis of the Rector family -- for decades, they had been intertwined with the City of Newport in business, government, and philanthropy.

Swain proved to be an overleveraged Florida businessman who, according to bankruptcy court documents, looted the company of its cash and plunged the company into a financial collapse. 

Then, the bankrupt company saw Jan Company purchase the chain out of bankruptcy. 

And, now, the fourth owner is Mark Bogosian. As GoLocal reported last Saturday, Bogosian says he has big plans and promises expansion.

Bogosian told GoLocal, “I am thrilled for the opportunity. My team and I are looking forward to expanding Newport Creamery. We are excited to be a part of such an iconic brand.”

Now, let us take you through the history from dairy to more than 40 stores and the need to restore the brand.

 

THE BEGINNING 

 

 

 

 

The milk business was very local in the 1930s. Newport Creamery had to seek approval from the local dairy board to increase prices.

The company continued to grow.

1941-1945  There were dozens of articles in The Newport Mercury and Newport Daily News highlighting Newport Creamery

1942 Mason Rector, who took over the leadership of the company from his father, Samuel, was elected to the Newport City Council, representing the Third Ward.

 

 

SELL THE DAIRY BUSINESS 

 

 

 

NEWPORT'S FOCUS ON RETAIL

The company establishes facilities and retail in Middletown on West Main Road and begins to grow.

 

 

 

Not long after the Wayland Square store opened, it was robbed.

 

 

 

 

A Man's World at the Top

 

But while the management jobs were for men, the marketing targeted women. And, there were jobs for women as waitresses.

 

 

 

 

 

 

Founder Dies

In 1966, as the company was growing, its founder and CEO, Samuel Rector, died.

 

 

Peter Rector took over as President, and the company continued its growth.
 

Demonstration

1969 - Students in Newport rally against Newport Creamery’s $0.30 minimum, targeting teenagers, claiming it was discrimination. The students appealed to the Newport City Council.

 

Growth Continues

1974 — Newport Creamery Announced its 26th Store at Lincoln Mall

 

Newport Creamery Former & Current Employees

Phillip Ragsdale is a Newport native and a former Newport Creamery employee. He worked at the Bellevue Avenue store for nearly a decade during the 1970’s. He started as a dishwasher and worked his way up. “Then I got promoted to cooking on the grill. Then I got promoted to takeout working, like making the Awful, Awful, making ice cream cones. Then I got promoted to a shift supervisor,” said Ragsdale in an interview with GoLocal.

Ragsdale, “I'll tell you what, when Rogers High School had home games, that parking lot would be a madhouse. They would pile right outside at the Creamery all the time.”

Regarding the ownership, Ragsdale described the owner — then Peter Rector —  as a decent man and a good owner.

“He was a very nice guy, very friendly, knowledgeable. I met him a couple of times when he came in to talk to the manager. Very nice man, very nice owner,” said Ragsdale.

 

Growth, Growth, Growth

The company continued as a Rhode Island success story.

The expansion continued through the 1980s and into the 1990s.

But then the company stalled, and the family sold.

 

New Owners - the Financial Decline

2000 — During the Swain era, the company had more than 40 stores - 8 in Connecticut, 13 in Massachusetts,  and 22 in Rhode Island.

 

 

Company Forced Into Bankruptcy

Bt 2002, the details of the financial collapse emerged in federal bankruptcy court. 

Swain, the former owner of Newport Creamery, transferred at least $340,000 of the company's money into three Florida businesses he controlled, according to evidence presented in U.S. Bankruptcy Court.

Court-appointed attorney Andrew Richardson sued Linda Swain, alleging that she took $900,000 from the Creamery for personal use, with no intention of repaying it.

 

 

Sold at Auction

The Jan Companies, founded by Nicholas Janikies in 1969 when he opened the very first Burger King restaurant in Rhode Island, bought the Newport Creamery company at auction.

From 2004 until the sale to Bogosian, Jan Companies reduced the company to just 8 locations.

 

NEXT

The future of the company is unknown. 

Bogosian has promised to invest in and expand the company.

Time will tell.