Ice Cream Company - Dippin’ Dots Inc. - Files for Bankruptcy

Dippin’Dots was once hailed as the future of ice cream but now the company faces an uncertain future after filing for Chapter 11 bankruptcy protection on Thursday in Paducah, Kentucky.

Dippin’ Dots makes specialty ice cream products, which are flash frozen onto tiny beads. Their products are mostly sold in venues such as malls, amusement parks, concert halls, and stadiums.  And although their profit for this year exceeded last year's they say they can no longer continue operations.

They've been battling foreclosure proceedings with Regions Bank for over a year and at the time of the filing they owed about $11 million to the bank, according to the Wall Street Journal.

In court documents Dippin’ Dots, listed assets worth $20.2 million while their debts have risen to $12 million. They asked the court to allow them to use cash collateral which secures the Regions Bank loan to continue operations.

Bankruptcy attorneys may recommend Chapter 11 to a business if they intend to continue operations. This structure will allow them reorganize and allows protection from creditors.

Businesses just like people run into troubles with finances and bankruptcy lawyers can outline the way in which they can protect their businesses from complete failure. There are number of protections available depending on the severity of a company’s financial difficulties. Only a bankruptcy attorney will know which filing is the best route and their advice is critical when trying to make a decision of this gravity.