Yarnell's files Chapter 7 bankruptcy | Arkansas Blog

Monday, August 29, 2011

Yarnell's files Chapter 7 bankruptcy

Posted By on Mon, Aug 29, 2011 at 10:13 AM

Yarnell's, the Searcy ice cream maker that ceased operations June 30, has filed a Chapter 7 bankruptcy petition. You'll find at the link the key creditors, info on sales (about $46 million last year) and amounts paid in salary to family members in last 12 months (about $243,000).

A company spokesman said comments would be limited to the prepared release, though she said the company had received a variety of offers for portions of the company's assets and that some included a resumption of manufacturing in Searcy. The bankruptcy trustee will evaluate and accept or decline such offers, the spokesman said.

The state has some $3.5 million in loans to Yarnell's among the $15.7 million in liabilities to be sorted out.

NEWS RELEASE

SEARCY, ARK. (Aug. 29, 2011) — Yarnell’s Ice Cream Company Inc. filed Chapter 7 Bankruptcy with the U.S. Bankruptcy Court, 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.

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