The ice cream of the future is fighting to stay in business.
Dippin’ Dots, the company that brought us colorful little beads of ice cream, filed for bankruptcy protection this week, as it looks to refinance its debt.
Dippin Dots filed for Chapter 11 Thursday night, and asked a U.S. bankruptcy judge to allow the ice cream company to use cash collateral so operations can continue while the case moves on. Allowing Dippin’ Dots to use cash will not harm creditors, the company said in the filing.
Their largest creditor is Regions Bank, which Dippin’ Dots owes $11 million, according to reports. The bank reportedly sued the frozen ice cream manufacturer and alleged that the company defaulted on several loans.
According to the Associated Press, Regions gave the “ice cream of the future” company two days warning that it was going to foreclose on the loans.
The company’s struggles started in 2008, like many other company’s trying to do business through the recession.
Dippin’ Dots was founded by Curt Jones, who used cryogenic encapsulation to freeze and make tiny beads of ice cream. The ice cream is located in thousands of amusement parks, fairs, and festivals across the world, as well as franchise locations.
“We are hopeful and believe we will be successful,” Steve Heisner, director of administration for Dippin’ Dots told the Associated Press. “There is no thought, intent…that our operations will be significantly different than they are today.”
Also hurting business was a costly legal battle that started with questions over whether Jones accurately filed the patents for the freezing process he used for the ice cream, according to reports.
In the filing, the Kentucky-based company reported $20.2 million in assets.