NEWS: Dippin' Dots files for Bankruptcy Protection

[milst1]

Reprinted without permission from the WSJ:

 

Dippin' Dots Files for Bankruptcy

 

By KATY STECH

 

The future of ice cream is having trouble surviving today.

 

Dippin' Dots Inc., the self-described "ice cream of the future," filed for Chapter 11 bankruptcy protection Thursday in U.S. Bankruptcy Court in Paducah, Ky., near its headquarters, after fighting off foreclosure efforts from Regions Bank for more than a year, according to court documents. At the time of the filing, the company owed about $11.1 million to the bank.

 

Company executives immediately asked for court permission to spend some of the cash collateral that secures the Regions Bank loan—a move to enable it to continue operating throughout the case.

 

The company "has no alternative borrowing source and to remain in business, the [company] must be permitted to use the cash proceeds described herein to pay general operating overhead and administrative expenses," its attorneys said in court documents.

 

The manufacturer of specialty ice cream products—flash frozen into tiny beads—said its novelty products are sold mostly in venues like theme parks, concert halls, and stadiums, as well as at franchised locations. So far this year, the company's revenues—now at $27.7 million—have surpassed last year's revenue of about $26.7 million, according to court documents.

 

In its bankruptcy petition, the company said its assets are worth $20.2 million while its debts have risen to $12 million.

 

Most companies that file for Chapter 11 protection intend to reorganize their finances and continue operating. President Curt Jones wasn't immediately available to comment.

Edited April 19, 2012 by jedimaster1227

[Skycoastin Steve]

Who will we look to for inside info on future theme park attractions now???

[BeemerBoy]

^ Actually, you would have thought they'd have seen this coming, right?

[Fooz]

Dippin dots guy leaked too many of their own trade secrets!

[Schotcher]

Creamin' Crunch will take it's place? :o

[cfc]

Are you wearing a black armband, Martin?

[A.J.]

Someone has to say it...

 

...did the Wall Street Journal get their information from the Dippin' Dots guy?

[Meteornotes]

^ Actually, you would have thought they'd have seen this coming, right?

 

Yes, and sent robots back from the future to stop it. Or something.

 

I was never a fan of this so-called "future" ice cream. Tasted like freezer burn to me.

 

dt

[Schotcher]

Dippin' Dots revenue from this year:

 

Dippin' Dots: $5,000

Overpriced Drinks: $27,695,000

 

I'll always remember Dippin' Dots for their $2.50 bottled water. Though I guess it is relatively cheap for an amusement park.

[milst1]

Yes, I'm personally devastated, but also hopeful that the company will continue to operate through reorganization. I wish they had been more aggressive marketing their newer, more interesting flavors, like Planet 51, or had done more creative marketing like Wooden Warrior Watermelon Ice at Quassy. But it just sounds like they simply took on too much debt, which is risky by definition. It's not the greatest ice cream, but it's a park staple. Like Tilt-a-Whirls.

Wooden Warrior Watermelon Ice

Planet 51 at Valleyfair! Mint dippin' dots with chocolate covered pop rocks!

[cfc]

I think chocolate mint the best of their flavors (but that's my favorite flavor of any kind of ice cream).

[DJeXeL]

Dippin' dots guy applied for a job at Tio Pepe's Churros I heard........

[downunder]

I thought Dipping Dots was popular, maybe there was a backlash from all the dud tip-offs about future amusement park installations. Still waiting for that Intamin woodie at Dorney.

 

If DD is the ice cream of the future, then there might not be ice cream in the future. That will be a blow to morbid obesity and ACE.

[DougMJr]

While I love dippin' dots, the servings were just too over priced a my home park, meaning I rarely ever bought some and opted for regular ice cream instead. It must be hard for DD because competitors ice cream is readily available at the parks.

[downunder]

^Good point, I've thought dipping dots was overpriced everywhere I've had them, and maybe that's where there problem is. Potentially, if you overprice you suppress demand.

[Chroniq]

^ Actually, you would have thought they'd have seen this coming, right?

 

 

 

Wow.. you just woke up a sleeping baby with laughter.

[Chrisrad]

I had a free serving of DDs at Dorney Park because it was included as a snack voucher during the TPR trip, but, otherwise, I hadn't had one for years.

 

I was always turned off by the price - just because it's 'high tech', you can't charge $5+ for a little bowl of ice cream.

 

So.. I guess I'm not surprised.

[BaMiTsPaT]

Not surprised but this in the slightest. I saw many more people walking around with cups of Coldstone or Ben & Jerry's at my home park. It must be hard to compete with these two ice cream titans. Also, the prices for this ice cream were far too high, and frankly it was more exciting for its novelty value than its actual taste.

[beatle11]

The only time I've ever had dippin' dots was at Dorney Park with a snack voucher. It was good, but it's definitely expensive.

[cal1br3tto]

I hope this doesn't spell the end for Dippin' Dots...sure, I rarely buy 'em, but I always found them refreshing.

 

The greatest deal I ever came across was at Silver Dollar City, where a Dippin' Dots cone was cheaper than the standard large size, but clearly was loaded with more of the snack. Perfect value!

 

Like Chris and Chris (but not Chris)... I used my voucher at Dorney on the Dots. (Loved that program since it meant I could get meals I enjoy at home, like Subway.) I got the cookie dough with bonus cookie dough bits, for the win.

[Philrad71]

^ Actually, you would have thought they'd have seen this coming, right?

 

 

That is funny...I read the article in this mornings paper and was thinking the same thing.

 

Like, how did they not know???? Another Harry Camping hoax, I say!!!

[WFChris]

I think every TPR member at the very least chuckled when they read this headline

[megamatt]

I'm not too upset. The past two times I got it the employee was rude and the actual product was all melted and refrozen together.

 

And the first time, when I payed for it, she said "Go to the *coffee shop name* next to me and get change there if you want change, I'm all out of change."

 

You shouldn't train your employees to say that if they don't have the proper change. You should train them to take a loss. Expecting the customer to take a loss or go to a different vendor just to get change is kind of ridiculous.

[Shavethewhales]

^Dippin Dots doesn't actually have employees on the ground, IIRCC. They license their product out to various parks/malls/concessionaires and individual licensees actually sell the product.

 

For all the assumptions people are making about the company based off this news, they were actually fairly successful, they just put their debt into the wrong hands apparently. Sounds like the bank may just be being ridiculous and trying to make a quick buck here. I'm sure the company will be able to work itself out of bankruptcy if they are allowed to.

[coasterfreak101]

I'd cry if Dippin' Dots went away. This is not a drill! Here's to hoping they can restructure and save the ice cream of the future!