The Downfall of a Major U.S. Ice Cream Company

In recent years, several businesses in the United States have resorted to Chapter 11 bankruptcy amid harsh economic conditions. Among the most affected sectors is the ice cream industry, with Totally Cool Inc. emerging as a notable case. The company faced not only financial trouble but also severe health violations when the Food and Drug Administration (FDA) discovered listeria contamination in some of its products.

This incident compounded the financial woes of Totally Cool, ultimately forcing the company to close its operations. Known for supplying ice cream to brands like Hershey’s, ChipWich, and Friendly’s, the collapse of Totally Cool had significant repercussions throughout the industry.

The pandemic further impacted the food and beverage sector, affecting longstanding players like Friendly’s. Once maintaining 90 operational locations at the start of 2025, Friendly’s had to transfer its renowned Wilbraham, Massachusetts plant to Dairy Farmers of America. Though its products still appear in supermarkets, the chain's restaurant presence has diminished considerably.

Similarly, Oberweis Ice Cream and Dairy Store filed for Chapter 11 but continued its legacy after being acquired by Hoffmann Family and Companies.