The Paducah, Ky.-based company said the filing was to avoid foreclosure on more than $11 million in loans owed to Regions Bank, its largest single creditor.
Dippin’ Dots sells frozen beads of ice cream with flavors like vanilla, chocolate, banana split, birthday cake and cotton candy in amusement parks, malls, theaters and franchised store locations.
The chain, which launched in 1988, has about 140 retail locations and 9,952 small vendor operations. It has three locations around town: at the Siegel Center, the Diamond and in the Greater Richmond Convention Center. It also had a setup at Kings Dominion.
A statement released by the company said the franchise will not be affected by the filing and will continue to operate.
In the bankruptcy filing, Dippin’ Dots listed about $20.2 million in assets and more than $12 million in liabilities. It listed $27.7 million in income through September, $26.7 million in income in 2010 and $33.8 million in 2009.