Jump to content
  TPR Home | Parks | Twitter | Facebook | YouTube | Instagram 

NEWS: Dippin' Dots files for Bankruptcy Protection


Recommended Posts

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 by jedimaster1227
Link to comment
Share on other sites

  • Replies 42
  • Created
  • Last Reply

Top Posters In This Topic

Top Posters In This Topic

Posted Images

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.

Link to comment
Share on other sites

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.

wwwice.jpg.931e3fc1e53e8665af5cee1bf54b9047.jpg

Wooden Warrior Watermelon Ice

p51.jpg.d7ce5c425fd8992c30cc8e2afc8ba982.jpg

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

Link to comment
Share on other sites

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.

Link to comment
Share on other sites

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.

Link to comment
Share on other sites

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.

Link to comment
Share on other sites

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.

Link to comment
Share on other sites

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.

Link to comment
Share on other sites

^ 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!!!

Link to comment
Share on other sites

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.

Link to comment
Share on other sites

^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.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Recently Browsing   0 members

    • No registered users viewing this page.

×
×
  • Create New...

Important Information

Terms of Use https://themeparkreview.com/forum/topic/116-terms-of-service-please-read/