A well-known ice cream producer, responsible for manufacturing Hershey’s branded cakes, has filed for bankruptcy following a significant listeria contamination recall earlier this year.
Totally Cool Incorporation, headquartered in Maryland, initiated Chapter 11 bankruptcy proceedings on August 23. The company’s portfolio includes not only Hershey’s ice cream and cakes but also products for Friendly’s, Taharka Brothers, Dolcezza, Abilyn’s Frozen Bakery, Jeni’s, and ChipWich.
The bankruptcy filing follows a June recall prompted by test results indicating potential listeria contamination in the company’s products. Listeria monocytogenes poses serious health risks, particularly to young children, elderly individuals, and those with weakened immune systems, as noted by the FDA.
Following the production halt, approximately 68 out of 71 employees were laid off, according to The Baltimore Banner. Totally Cool’s bankruptcy filing reveals liabilities between $1 million and $10 million, with assets ranging from $500,000 to $1 million.
The company is now focused on restructuring its finances to address its obligations to a creditor base of 50 to 99 entities. Prior to the recall, the affected products were distributed nationwide, available in retail stores and through direct-to-consumer deliveries.
A comprehensive list of the recalled products is available online. Consumers who have purchased these items are advised to either return them for a full refund or dispose of them immediately.
Totally Cool’s production agreements include both long-term contracts and short-term arrangements to manage demand surges. For instance, Taharka Brothers Ice Cream had engaged Totally Cool to produce two of its popular flavors, Honey Graham and Key Lime. Although no listeria was detected in these flavors or other products made by Totally Cool, the FDA mandated a full recall as a precautionary measure. Taharka Brothers has since resumed production of these flavors at its own facility.
Individuals who contract listeria may experience severe symptoms such as high fever, headache, stiffness, nausea, abdominal pain, and diarrhea. Pregnant women are particularly at risk, as listeria can lead to miscarriages and stillbirths. Symptoms typically manifest within 24 hours of consumption and can persist for days or even weeks, depending on the infection’s severity.
Listeria outbreaks are rare in the United States, with past incidents usually linked to unpasteurized dairy products, raw vegetables and fruits, undercooked meats, and, occasionally, ice cream, according to the FDA. The CDC estimates that 1,600 Americans contract listeriosis annually, with approximately 260 of these cases resulting in death.
