Yarnell’s Ice Cream kicked out this press release this morning:
Yarnell’s Ice Cream Co. Inc. filed Chapter 7 Bankruptcy with the U.S. Bankruptcy Court, in the Eastern District of Arkansas today. The privately owned company, headquartered in Searcy, Ark., ceased operations in late June.
Yarnell’s court filing shows $8 million in total assets and $15.7 million in total liabilities. Debt includes secured creditors, unsecured priority claims and unsecured nonpriority claims. Secured creditors include the bonds issued by the Arkansas Development Finance Authority and Arkansas Economic Development Commission, both of which are secured by the company’s equipment and real estate.
Since ceasing operations in June, Yarnell’s has been working to maximize the value of its assets, which included the sale of remaining inventory (Walmart purchased in July) and meeting with potential purchasers.
Over the past two months, Yarnell’s has received offers to purchase the company’s assets, including property, the Yarnell’s trade name and recipes, and inventory. Some of these offers are from entities that have expressed their desire to recommence manufacturing Yarnell’s ice cream in Searcy. All these offers are subject to non-disclosure agreements, which prohibits Yarnell’s management from commenting. Yarnell’s intends to provide all offers to the bankruptcy trustee.
Chapter 7 bankruptcy involves liquidation of a company’s assets and a dissolution of the corporation. Yarnell’s announced in June that it would cease operations and search for a potential suitor. Talk Business will update this story later today.