Legal Question in Business Law in California

Sure, if he has six months of covered employment within the last year. edd.ca.gov

This sounds like another way of saying he lost his job because he was fired. Whether the dismissal (firing) was due to the friend's incompetence, or, as here, because the company shut down, it's all the same to the unemployment folks -- an involuntary termination. He should be eligible if he had enough prior months of covered employment.

Of course. Apply.