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dippin dots nutrition Wholesale JC Tretter Jersey , The ice cream for the future is struggling to survive.
Following a four-year struggle with its biggest lender, Dippin’ Dots Inc. declared Chapter 11 bankruptcy protection on Thursday in U.S. Bankruptcy Court in Paducah, Ky., to prevent foreclosure.
The maker from the quirky and colorful frozen treats beads, which are flash frozen using liquid nitrogen, owes $12 million, the majority of it to a unit of Regions Financial Corp., which moved to foreclose on the loan now.
The 170-worker company, which calls its frozen treat “ice cream for the future Wholesale Kevin Zeitler Jersey ,” fell into technical default four years ago at the peak of the financial crisis, when customers were no more willing to spend the few dollars it cost for a cup.
It has about 140 Dippin’ Dots retail locations, which are mostly controlled by franchisees, and agreements with 9,952 small vendors who sell the ice cream at fairs, festivals and sporting activities. It isn’t sold in supermarkets due to the extreme cooling requirements.
Its sales woes came in the tail end of an expensive legal battle-one the company ultimately lost-over whether founder Curt Jones properly filed the patents that protected its special freezing process.
“All of this hit us simultaneously,” said Steve Heisner, the company’s director of administration, customer support and knowledge systems.
dippin dots nutrition Wholesale Danny Shelton Jersey , Mr. Heisner asserted Dippin’ Dots offered Regions several proposals to pay for a portion of their loan, but the bank rejected the offers before posting foreclosures notice on Tuesday. A representative for Regions Bank declined to comment.
The company said its assets are valued at $20.Two million. It owns a 120,000-square-foot plant in Kentucky that can produce more than 25,000 gallons of frozen dots each day.
Mr. Heisner said the company doesn’t expect to sell its operations, which are still mostly owned by Mr. Jones, a microbiologist who started the organization in 1988. The organization has been hailed as an achievement in entrepreneurship by celebrities for example Oprah.
The organization said hello sales are slowly recovering. By Thursday, it reported having $27.7 million in revenue, above last year’s $26.7 million.
Company executives sought court permission to invest some of the cash collateral that secures the Regions Bank loan make it possible for it to carry on operations. The court set a Nov. 17 hearing on its request.
“Without use of the cash collateral…[the company] won’t be able to pay its vendors, and it is vendors will probably cease to supply products or services towards the debtor on credit Wholesale Shon Coleman Jersey ,” the company’s attorneys explained in the court documents.
Based on the company’s proposed price range, it’ll need a minimum of $23,000 to pay for liquid nitrogen alone with the end of the year. The liquid nitrogen is used to help keep the frozen treats dots below the necessary temperature of minus 40 degrees Fahrenheit.dippin dots nutrition
The author is a certified business and life discipline. He has a diverse background as a Management Consultant to Fortune 500 and small businesses for the past 20 years. He graduated from Grambling, RPI and Harvard University.
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