The ice cream industry is facing a tough freeze, as a growing number of companies grapple with financial turmoil, bankruptcies, and sell-offs.
One of the most recent casualties is Totally Cool Inc., a Maryland-based ice cream manufacturer. The U.S. Department of Justice (DOJ) has permanently shut down the company, prohibiting it from producing or distributing any adulterated food products. The decision follows a consent decree filed in March, which cited violations of the Federal Food, Drug, and Cosmetics Act (FDCA). The ruling came almost a year after the U.S. Food and Drug Administration (FDA) issued a recall for numerous Totally Cool products due to listeria contamination. The company filed for bankruptcy in August 2024, shortly after the recall, and in March 2025, it sold its assets for $650,000, according to the Baltimore Business Journal.
Totally Cool Inc.’s products were sold under several major distributors, including Hershey, ChipWich, and Friendly’s. The latter has also faced its own financial struggles in recent years. In 2020, the beloved ice cream restaurant chain filed for bankruptcy due to financial losses from the COVID-19 pandemic. Although Friendly’s has attempted to recover, its efforts have been met with challenges. Once a nationwide chain with 804 locations, Friendly’s now operates only 90 restaurants. The company, originally founded in Springfield, Massachusetts, no longer owns its factory in Wilbraham. It is now run by Dairy Farmers of America and continues to produce ice cream for both Friendly’s restaurants and retail sale.
Similarly, Oberweis Ice Cream, a regional chain in the Midwest, has also encountered financial woes. In 2024, the company filed for bankruptcy, eventually selling its business to Hoffmann Family and Companies shortly after entering Chapter 11. Despite these struggles, Oberweis continues to operate over 40 stores across the Midwest.
Both Friendly’s and Oberweis have launched new products and initiatives in an effort to revitalize their menus and attract customers. However, the industry’s recent struggles underscore the challenges faced by ice cream companies amid changing consumer preferences and broader economic pressures. As more businesses face financial pressure, it remains to be seen whether the ice cream sector can bounce back from this cold spell.
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