TITLE: Ample Hills Creamery: From Bankruptcy to Rebuilding – The Rocky Journey of a $40 Million Ice Cream Company
DATE: [Insert Date]
Ample Hills Creamery, once a thriving ice cream business valued at $40 million, faced a tumultuous journey that led to its downfall and eventual rebirth. Co-founders Brian Smith and Jackie Cuscuna experienced both success and failure in their quest to build a beloved ice cream brand.
The husband-and-wife duo began their venture with an ice cream push cart, which eventually led to the opening of their first Ample Hills shop in Brooklyn, New York, in 2011. With 13 scoop shops and a nationwide online store, Ample Hills reached its peak, captivating ice cream enthusiasts across the country.
However, the success was short-lived. In March 2020, Smith and Cuscuna filed for business bankruptcy, followed by personal bankruptcy six months later. In June 2020, Schmitt Industries, a machine parts manufacturer entering the food business, acquired Ample Hills Creamery for $1 million.
Costly business decisions and strategic missteps were cited as the primary reasons for Ample Hills’ decline. Despite the company’s sales and popularity, financial losses continued to mount. Smith lamented, “We lost everything.”
Nevertheless, a year after their setback, Smith and Cuscuna opened a new ice cream shop called The Social in Brooklyn. In a surprising turn of events, they partnered with investors to reacquire the Ample Hills brand for just $150,000 in June.
The story of Ample Hills Creamery exemplifies the founders’ resilience and determination. Both Smith and Cuscuna came from different professional backgrounds, with Cuscuna being a former teacher and Smith a screenwriter. However, their shared passion for making and sharing ice cream propelled them forward.
The initial success of Ample Hills attracted attention from celebrities and business opportunities, such as an invitation from Disney CEO Bob Iger to open a shop at Walt Disney World. This led the duo to raise $19 million through venture capital funding for expansion and the construction of a large factory in 2018.
Unfortunately, problems began to emerge. The factory’s size created an excess supply that exceeded demand. Unique ingredients caused equipment clogging, and substantial expenses were incurred in designing custom rectangular pints. Wasted product due to machine malfunctions further exacerbated their financial woes.
Despite their efforts to secure additional funding, Smith and Cuscuna’s pleas to investors were declined, resulting in bankruptcy filings. The subsequent sale to Schmitt Industries helped settle outstanding debts.
Following the bankruptcy, Cuscuna sought guidance from a business advisor through a “pivot course” for entrepreneurs. This connection eventually led to the establishment of their new ice cream shop, The Social, with a focus on profitability and a limited number of invested partners.
In a remarkable turn of events, the opportunity arose to reacquire Ample Hills Creamery. In December 2022, Schmitt Industries decided to shut down shops and furlough employees, leading Smith, Cuscuna, and their investors to successfully bid $150,000 for the brand’s revival.
Now, the co-founders aspire to nurture both The Social and Ample Hills into prosperous businesses. The July revenue of approximately $350,000, alongside profitable individual shops, marks signs of growth and stability. Smith emphasizes the importance of refining operations and brand building as they cautiously move forward.
Ample Hills Creamery’s journey is a testament to the resilience of its founders and their ability to bounce back from adversity. The tale serves as a reminder that even in the face of failure, determination and passion can pave the way for a second chance at success.