Dippin' Dots, LLC, a newly formed company based in Oklahoma and funded by private capital, has agreed to acquire Paducah, Ky.-based Dippin’ Dots, Inc. A motion to approve the proposed sale was filed in the U.S. Bankruptcy Court in Louisville, Ky. This buyer is unaffiliated with the existing Dippin’ Dots, Inc.
Scott Fischer, president of the new Dippin’ Dots, LLC, said in a prepared statement, “We are looking forward to working with the Dippin’ Dots management team and employees to maximize the opportunity of the business and realize the company’s growth potential in a global market. We are committed to ensuring that Dippin’ Dots reclaims its status, not as a novelty of the past, but as the ice cream of the future. This transaction has become a very equitable solution to the parties involved, and we expect a very smooth transition.”
Dippin’ Dots, Inc. is a maker of flash-frozen ice cream. The company manufactures the product in Kentucky and sells to theme parks, concert and sports venues and sells to a network of over 125 franchisees nationwide. Dippin’ Dots also sells internationally to customers and licensees in Canada, Europe, South Korea, Brazil, Japan and Australia. Dippin' Dots employs approximately 165 workers at their facility in Paducah, Kentucky.
In November 2011, Dippin’ Dots, Inc. filed for Chapter 11 bankruptcy protection in federal court in Kentucky. A hearing to approve the sale transaction is set for May 2. Closing of the transaction should be completed by mid-May.
Fischer added, “We are looking forward to rolling up our sleeves and personally meeting with all of the employees, franchisees, and business associates of the company and moving forward in a very stable and productive manner. We see substantial value in the Dippin’ Dots brand, one of the most well-known brand names in the retail market,” he said.
“This is a good news scenario for all involved,” said Chief Reorganization Officer Greg Charleston of Conway MacKenzie, an Atlanta, Ga.-based reorganization firm. “The proposed new ownership is enthusiastic about the company and its potential to grow.”
Fischer said the headquarters and operations will remain in Paducah, Ky.