Goodbye to This Well-Known U.S. Company: Dozens of Locations Affected

The ice cream parlor and dessert restaurant sector is not going through its best moment. This has led several iconic companies to declare bankruptcy and cease operations. So much so that some well-known brands have confirmed their farewell.

Among the most notable cases are Friendly's Restaurants, Oberweis Ice Cream and Dairy Store, and Totally Cool Inc. Friendly's Restaurants, a chain known for its ice cream, sandwiches, and burgers, declared bankruptcy in November 2020. It has attributed its crisis to a "catastrophic impact" caused by the prolonged closure of its restaurants due to COVID.

In January 2021, its owner, FIC Restaurants, sold the company's assets to the Amici Partners LLC group. Years later, in April 2024, another historic Midwestern brand, Oberweis Ice Cream and Dairy Store, also filed for bankruptcy protection under Chapter 11, seeking to reorganize its business.

The company, which operated 43 locations in Illinois, Indiana, Michigan, and Missouri, was sold to Hoffmann Family of Companies in June 2024, successfully emerging from the bankruptcy process. Founded in 1927, Oberweis was a symbol of dairy tradition, selling its milk in glass bottles and offering home delivery.

The Bad Streak of Ice Cream Companies

The most alarming case was that of Totally Cool Inc., an ice cream manufacturer for brands like Friendly's, Hershey's Ice Cream, Jeni's, and ChipWich. The company was forced to halt its production after detecting contamination by Listeria monocytogenes in 69 of its products.

This triggered a massive recall of products distributed throughout the United States. The FDA intervened, and in March 2025 obtained a court order prohibiting participation in any food-related activity. Totally Cool, based in Owings Mills, Maryland, declared assets of 2 million dollars and debts of 1.4 million in its bankruptcy filing.

New Challenges in the Sector

In March 2025, it reached an agreement to sell its assets for 650,000 dollars to Chill Ice Cream Solutions. Although no illnesses related to the contaminated products were reported, the situation caused great concern. Listeria can cause severe infections, especially in children, the elderly, and pregnant women.

These cases reflect the challenges that food sector companies still face, especially those with traditional operations or dependent on the physical channel. The consequences have been devastating for employees, franchisees, and consumers who see lifelong brands disappear.