Dippin’ Dots Inc. filed for Chapter 11 protection in federal bankruptcy court this week. But don’t be too alarmed: the company spokesman said it will “absolutely” remain in business. Listen Dippin’ Dots, ya’ll have to figure something out because I NEED you during those hot summer days on the Jersey Shore boardwalk!! Read why the company is going bankrupt after the jump!
Dippin’ Dots Inc., maker of the tiny orbs of ice cream that are a staple of American malls and amusement parks, has filed for Chapter 11 protection in federal bankruptcy court in the Western District of Kentucky.
The bankruptcy is the result of Dippin Dots’ “failure to reach an agreement with its secured lender Regions Financial (RF, Fortune 500), following several attempts to do so,” the company said in a statement.
Dippin Dots owes Regions about $10 million, according to Steve Heisner, a company spokesman.
The “beaded” ice cream producer’s bankruptcy filing sheds light on how the bottom line melted away.
The company has liabilities totaling $12 million, with debts ranging from $657,000 owed to Marion, Ill.-based Peoples Bank to $7.16 owed to Quimby Rubber Stamps Shoppe of Paducah, Ky.The company’s, ahem, “frozen” assets total $20.2 million, and include more than $3 million worth of “ice cream inventory.”
Despite the bankruptcy, the company will “absolutely” remain in business, Heisner said.
Microbiologist Curt Jones employed his expertise in “cryogenic technology” to create Dippin’ Dots in 1988, according to the company’s website.
