Batch, the award-winning Western Massachusetts ice cream brand known for its commitment to real ingredients, filed for Chapter 11 bankruptcy on Monday as it pivots away from the grocery store business to save its local scoop shops.
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The Longmeadow-based chain filed its petition in the U.S. Bankruptcy Court for the District of Massachusetts, listing $100,000 to $500,000 in assets and $500,000 to $1 million in liabilities, court records show.
David LeRiche, President of Batch Inc., told MassLive that the brand will no longer be distributing ice cream pints to grocery stores in Massachusetts, Connecticut and Rhode Island.
Citing a “significant increase in all aspects” of the business—particularly the cost of ingredients—LeRiche explained the necessity for the change.
Meanwhile the company plans to continue operating its scoop shops in Longmeadow and South Hadley as well as its scoop truck for events.
“Since COVID we have experienced enormous increase in all areas of distribution: fuel, truck repairs, insurance, freezer repairs, labor and ingredients,” LeRiche said. “Batch needed to close only the distribution side to restructure and focus on the other two-thirds of our business.”
Batch plans to utilize Subchapter V of Chapter 11, a provision designed to help small businesses to reorganize debt while continuing daily operations.
According to court documents, the company’s financial strain is driven by a mix of pandemic-era federal loans and high-interest business lines of credit.
The filing reveals significant debts to industry supplies, including $28,318 to Instantwhip Connecticut, $16,127 to Royal Ice Cream and $11,583 to Cold Fusion Gelato. Smaller debts are also owed to local specialty vendors like Boston Vegan and Soco Creamery.
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Batch is also grappling with several disputed claims from merchant cash advance providers and business lenders. Among the top unsecured creditors are Headway Capital at $99,748, OnDeck Capital at $84,111 and iBusiness Funding at $69,776.
Despite the filing, the company’s physical assets remain intact, including a fleet of customized ice cream trucks and vans valued at $48,400. Notable vehicles include a 2004 Freightliner and a 1985 Chevrolet Step Van, which serve as mobile scoop shops.
When combined with specialized machinery — including a walk-in freezer and a commercial ice cream machine — the company’s total equipment and vehicle assets are valued at $80,200.
The news comes after Batch announced in October that it would exit store shelves because it had become “increasingly difficult, nearly impossible” to find a facility capable of producing ice cream to the brand’s specific quality standards.
Founded in 2009 by Susie Parish and Veronica Janseens, the brand was later acquired by David and Deb LeRiche in 2018. Since the acquisition, the brand expanded its reach through its mobile fleet and the addition of a second location at 15 College St. in South Hadley.
Batch has earned significant acclaim over the years for using real ingredients like homemade caramel, real bananas and vanilla beans, earning a “Best Ice Cream in Boston” title, by GQ Magazine and a Sofi Silver Award, the company noted on LinkedIn.
Under the Chapter 11, Batch will be required to submit a reorganized plan within the coming months. The plan will outline how the company intends to restructure its operations and satisfy its creditors over a multi-year period.
“This restructure will enable for us to focus on the shops and scoop trucks to provide our amazing customers the best experience. For example: we just added Door Dash delivery to scoop shops,” LeRiche said. “Batch will absolutely continue business as usual with our two scoop shops and scoop trucks.”
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