Another popular ice cream brand files for Chapter 11 bankruptcy
According to The Street, Electric vehicle maker Fisker, for example, in June simultaneously filed for Chapter 11 protection and issued a recall of all of its 2023 Fisker Ocean vehicles produced through May 2024. The recall involved door handles on the vehicle that might stick and prevent passengers from entering or exiting the vehicle. The problem was caused by a “dimensional variation” in the door handle measurements, InsideEVs reported. Fisker recalled 12,523 Oceans sold in the U.S., Canada, and Europe to address the problem.
The recall wasn’t the only reason for the Chapter 11 filing, as the company has cited “various market and macroeconomic headwinds” for contributing to its financial distress. Fisker also faced various other mechanical issues, including “unintentional vehicle movement,” investigated by the National Highway Traffic Safety Administration in February. The investigation cited the Ocean’s inability to shift between gears, including the parking gear.
A major problem for bankrupt Fisker and its various recalls is its lack of replacement parts for repairs. The company never stockpiled an adequate amount of replacement parts, leading service departments to source parts from disassembled cars, according to former Fisker employees.
WanaBana’s Bankruptcy
In another recall case, apple sauce manufacturer WanaBana filed for Chapter 7 bankruptcy liquidation on May 15, following a November 2023 recall of its cinnamon applesauce that led to several lead poisoning lawsuits. The recall was issued after high lead levels were discovered in the product, with the applesauce containing more than 2,000 times the U.S. legal limit for lead in food.
Totally Cool Files Chapter 11
And now, Totally Cool Inc., which manufactures ice cream brands including Friendly’s, Hershey’s Ice Cream, Abilyn’s Frozen Bakery, Jeni’s, and ChipWich, filed for Chapter 11 bankruptcy protection on August 23 after halting production and distribution and recalling all of its ice cream products two months earlier due to potential Listeria monocytogenes contamination.
The Owings Mills, Md., debtor filed its petition in the U.S. Bankruptcy Court for the District of Maryland, listing $1 million to $10 million in liabilities and $500,000 to $1 million in assets. Totally Cool shut down production and recalled 69 ice cream products across 13 brands in June after a Food & Drug Administration sampling discovered the presence of Listeria monocytogenes. The company took preventative actions and investigated the contamination.
Also read: MONEY GRAB: Americans to get one-Term Payment from $1.1m Wages Settlement
The recalled products were distributed nationwide and available in retail locations and through direct delivery. No illnesses had been reported as of the statement. Consumers with recalled products were urged to return them for a full refund.
Listeria monocytogenes can cause serious and sometimes fatal infections in young children, frail or elderly people, and others with weakened immune systems. Healthy individuals may experience only short-term symptoms like high fever, severe headache, stiffness, nausea, abdominal pain, and diarrhea. However, Listeria infection can cause miscarriage and stillbirths among pregnant women.
Oberweis Ice Cream and Dairy
While Listeria contamination led to Totally Cool’s bankruptcy, financial distress was the reason for Midwest ice cream retailer Oberweis Ice Cream and Dairy’s Chapter 11 filing in April. Oberweis successfully emerged from bankruptcy after completing a sale of its business on June 17 to Hoffmann Family of Companies.
