Beloved Ice Cream Brand Files for Chapter 11 Bankruptcy: What’s Next?
The competition in the ice cream industry is heating up, with established chains like Dunkin Brands’ (DNKN) Baskin Robbins, Cold Stone Creamery, Haagen-Dazs, Marble Slab Creamery, and Ben & Jerry’s leading the market. Burger chains such as Dairy Queen, Sonic, and Culver’s have also built a strong reputation for their ice cream offerings, but they struggle to compete with dedicated ice cream brands.
According to data from ScrapeHero, Baskin Robbins boasted 2,376 locations in 2023, while Cold Stone Creamery had 998 locations in the U.S. as of January 25, 2024. General Mills’ (GIS) Haagen-Dazs operates over 900 locations across 50 countries, and Marble Slab Creamery, part of Fat Brands (FAT), has over 395 locations in 22 states. Although the exact number of Ben & Jerry’s locations is unclear, Rentech Digital reported that the company had more than 200 locations in 2021, according to Eat This, Not That.
The ice cream industry hasn’t been kind to all companies. The Friendly’s restaurant chain, known for its ice cream, struggled against both restaurant and ice cream competitors, leading to its first bankruptcy in 2011. The brand was sold five years later but faced financial challenges during the COVID-19 pandemic, resulting in a second Chapter 11 bankruptcy filing in November 2020.
Friendly’s Expansion in Texas
In January 2021, Amici Partners Group and its affiliate Brix Holdings acquired 130 corporate-owned and franchised Friendly’s restaurants out of bankruptcy. Now, Brix Holdings aims to expand its franchise network into Texas. In a February 2024 statement, CEO Sherif Mityas emphasized the brand’s potential for national appeal, similar to its established presence on the East Coast. “We believe there are entrepreneurs in states like Texas who understand the legacy and opportunities Friendly’s can bring to new communities,” Mityas stated. “The brand has shown resilience and growth over more than eight decades, proving that its potential is limitless with the right business partners.”
Oberweis Ice Cream and Dairy’s Bankruptcy
While one ice cream brand is on the rebound, another, the iconic Oberweis Ice Cream and Dairy, is facing challenges. Founded in 1927, Oberweis filed for Chapter 11 bankruptcy on April 12, seeking to reorganize its business. Known for selling milk in glass bottles and offering home delivery across several Midwest states, Oberweis opened its first ice cream shop in 1951 and currently operates 43 locations in Illinois, Indiana, Michigan, and Missouri.
The North Aurora, Illinois-based company reported assets and liabilities ranging from $10 million to $50 million in its bankruptcy filing. Among its top unsecured creditors are Penske Truck Co., food safety company EcoLab, and the Cook County Treasurer, to whom Oberweis owes over $173,000, as reported by Chicago NBC affiliate WMAQ.
