Dippin Dots, that ice cream which is not an ice cream but is dots, had been in Chapter 11 bankruptcy but has been saved, reports The Wall Street Journal. And this is good for America because it keeps an iconic innovator going and because it saves readers from the millions of “melt” or “meltdown” jokes that get made when ice cream companies go under.
The great savior in this case, Mark Fischer, an Oklahoma energy executive, who got the company for about $12.7 million. Now Dippin Dots will continue to be present at sports stands around the country.
The basic problem with Dippin Dots ice cream is that it takes a lot of cold to keep it appetizing. The dots start sticking to each other at any temperature above negative 40 F. This prevents Dippin Dots from being in grocery stores.
Dippin Dots is the brainchild and invention of a microbiologist by the name of Curt Jones, who created the Frankenstein ice cream in his garage.
Dippin Dots' bankruptcy was filed in November and the company has been looking for buyers ever since.
This is exactly what a Chapter 11 bankruptcy filing is supposed to do. Either a business can reorganize and change strategies (like finding a way to prevent dots from sticking), or if innovation is not possible, then to find a buyer.
A Chapter 11 bankruptcy asks the company to try and rearrange its debts and obligations, as well as to consider restructuring, and reorganizing. Chapter 11 allows the debtor to propose a plan for profitability post-bankruptcy, which may include trimming costs and seeking new sources of revenue or income, while temporarily holding creditors at bay.
In that sense, business bankruptcies are better than personal bankruptcies like Chapter 7 or 13, because there no one can swoop in and save you.