Did The Double Dip Threat Do In Dippin Dots? What About Your Finances?
The top news in 2011 was full of double dip recession talk. This occurs when a recession ends and there is a short period of recovery for the economy, but this recovery is quickly followed by another recession that drags down the economy. Hiring in the USA has stagnated, consumer confidence is extremely low, the unemployment rate is very high, and housing priced have plummeted, which makes a double dip recession a very real threat to the US economy, businesses, and consumers.
Did this double dip threat do in Dippin Dots, an extremely popular manufacturer that produces ice cream beads that are loved around the country?
It would seem so. Dippin Dots recently filed for Chapter 11 bankruptcy protection, filing the case in Paducah, KY with the appropriate US Bankruptcy Court. This move was made by the company in an attempt to prevent a foreclosure action.
The Wall Street Journal reports “The manufacturer of the quirky and colorful ice cream beads, which are flash frozen using liquid nitrogen, owes $12 million, the bulk of it to a unit of Regions Financial Corp., which moved to foreclose on the loan this week. The 170-worker company, which calls its frozen treat “ice cream of the future,” fell into technical default four years ago at the peak of the economic crisis, when customers were no longer willing to spend the few dollars it cost for a cup.”
The Dippin Dots empire includes 140 franchise locations controlled by the company, and an additional 10,000 vendors roughly who rely on the sale of this treat at sporting events and games, fairs, festivals, and other events. The setbacks experienced by the company due to the economic conditions almost meant a lack of product for the summer season but this was narrowly averted.
This situation was caused by a lengthy battle with the biggest lender of the company, a battle that lasted 4 years. There were several proposals made by Dippin Dots to the bank holding the loan, which was needed due to poor recessionary sales, but the bank continued to reject the proposals and posted a foreclosure notice. It is ironic that Dippin Dots is now in the same situation as underwater homeowners in the current economy, without the ability to pay off debts and loan balances and facing a bank that refuses to enter negotiations or work with a long time customer.
The bankruptcy of Dippin Dots shows just how bankruptcy protection can help companies and individuals both adjust and adapt in an environment that is constantly changing, because of the recent recession and threat of another one coming. Numerous industries, companies, and individuals are facing financial difficulties and challenges. The housing market is low, tourism and sales have dropped significantly, consumers are extremely skittish and tend to save money rather than splurging, and even businesses which have been highly successful and unique have been adversely affected.
If you have seen a negative impact from the recent economic difficulty like Dippin Dots has then a bankruptcy filing may be the answer. This step will give you some time to change your financial organization and stop the creditors and threats hanging over you which affect your decision making abilities. Bankruptcy protection will also allow you to diminish your debt and work towards a future that is more profitable. If Dippin Dots can use bankruptcy to avert financial collapse, and block the bank’s attempt to foreclose, then why not you? If you are facing a bank that won’t work with you at all you need to know that you have the same access to bankruptcy relief as the thousands of companies who find bankruptcy the only way to force the banks to work with them.
Are you an individual who has heard about bankruptcy and who wants to understand more about this subject and the benefits? Do you feel like you are drowning in debt? Are you facing foreclosure or garnishment? If you are considering bankruptcy or have debt problems the first step should be to consult a qualified debt relief attorney, one who handles bankruptcy and specializes in resolving your debt problems. A skilled bankruptcy attorney will look out for your best interests and represent you during the bankruptcy process. The bankruptcy attorneys at the Law Offices Of Richard West Law can help you find the answer and the debt relief that you need. Call 1-513-771-8700, call 1-937-748-1749, or visit www.debtfreeohio.com now to arrange for a free consultation about your specific case.