Citing a drop in sales and rising prices in the industry, an ice cream company that was in business for close to 80 years shut its doors and filed for a liquidation bankruptcy. The business had originally stopped all operations on June 30, but then filed for Chapter 7 bankruptcy on Monday.
According to the Chapter 7 filing, the company has $8 million in assets, and owes close to double that in liabilities to creditors.
According to a press release sent out by Yarnell’s Ice Cream Company Inc., there has already been an offer to purchase not only company’s assets, but also the entire brand name, leftover inventory and recipes.
And while this offer is surely good news for the company, there has been no word yet on what will happen to the 200 people who were laid off in June when the company stopped all operations. Without being re-hired, many of those former ice cream company workers may find themselves in similar financial situations as the company: owing more than what they have.
When looking at the current economy it should also be mentioned that Yarnell’s Ice Cream Company Inc. is not alone in the decision to file for bankruptcy, as many businesses — both large and small — have also found themselves struggling to keep up with increases in expenses, but also decreases in revenue. For many, the debts have just become too much to bare and have led to a business bankruptcy being the best debt relief option.
Source: The Washington Post, “Searcy-based Yarnell’s Ice Cream Company, closed in June, file for Chapter 7 bankruptcy,” Aug. 29, 2011