Totally Cool Inc. Files for Chapter 11 Bankruptcy

Totally Cool, Inc., an ice cream manufacturer based in Owings Mills, Maryland, has filed for Chapter 11 bankruptcy following a significant recall of over 60 products due to potential listeria contamination. The recall was prompted by an FDA inspection that discovered listeria near production lines, leading to an order to cease operations, which resulted in nearly all of the company's 71 employees being laid off. The company, which has operated since the 1990s, reported liabilities between $1 million and $10 million and assets between $500,000 and $1 million, with 50 to 99 creditors, including major suppliers like United Dairy and Jeni's Splendid Ice Creams. Despite the recall, no illnesses have been reported. The bankruptcy filing allows Totally Cool to restructure and potentially sell its assets, as indicated by its legal representatives. This incident reflects broader challenges in the food manufacturing industry, particularly in maintaining safety standards and financial stability amid recalls.