The ice cream industry continues to feel the effects of financial struggles linked to the Covid-19 pandemic, as several brands have filed for bankruptcy in recent years. One of the most notable cases was Friendly’s Restaurants, which filed for bankruptcy in November 2020. Known for its ice cream desserts, sandwiches, and burgers, Friendly’s reported severe losses after dine-in services were halted and later reopened with limited capacity. In January 2021, its owner, FIC Restaurants, sold its assets to Amici Partners Group LLC through a bankruptcy sale.
Similarly, Oberweis Ice Cream and Dairy Store, a Midwest retailer that had been in business since 1951, filed for Chapter 11 protection on April 12, 2024, citing financial distress. The company, which had 43 retail locations across Illinois, Indiana, Michigan, and Missouri at the time of its filing, reorganized its business and sold its assets to Hoffmann Family of Companies by June 17, 2024, exiting bankruptcy shortly thereafter.
In a separate case, Totally Cool Inc., a defunct ice cream manufacturer that produced products for brands such as Friendly’s, Hershey’s Ice Cream, Jeni’s, and ChipWich, has sold its assets for $650,000 through bankruptcy proceedings. The company, based in Owings Mills, Maryland, filed for Chapter 11 bankruptcy protection on August 23, 2024, after halting production and recalling all of its ice cream products due to potential Listeria monocytogenes contamination.
Totally Cool’s bankruptcy filing revealed assets worth $2 million and liabilities totaling $1.4 million. After the company suspended operations, the U.S. Food and Drug Administration (FDA) discovered listeria in the company’s products, prompting a nationwide recall of 69 ice cream items from 13 brands. The company also laid off 68 employees as a result of the facility shutdown.
Listeria monocytogenes is a bacteria that can lead to severe infections, particularly in vulnerable populations such as young children, the elderly, and individuals with weakened immune systems. Though healthy individuals may experience short-term symptoms like fever, nausea, and diarrhea, the infection can cause more serious consequences, including miscarriage and stillbirths in pregnant women.
In response to the contamination, Totally Cool implemented preventive measures and worked with the FDA. In March 2025, the company reached an agreement to sell its assets to Chill Ice Cream Solutions. Additionally, the FDA obtained a permanent injunction in the U.S. District Court for the District of Maryland, barring Totally Cool and its CEO, Michael J. Uhlfelder, from engaging in food-related operations until meeting specific safety requirements. The company later settled with the FDA, agreeing to discontinue all food processing and preparation activities.
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