Ample Hills Creamery: Rebuilding After Bankruptcy
When I embarked on my own journey into the world of ice cream, one brand in particular stood out for their determination to create a high quality product, totally from scratch right in their own store: Ample Hills Creamery. At its height in 2019, the ice cream company generated over $10 million in annual sales and was valued at $40 million. Praised by celebrities like Oprah Winfrey and Steven Spielberg, Ample Hills was on top of the world. I was impressed at how quickly they were able to grow their business and their branding was the source of much inspiration to me. However, their story now serves as a cautionary tale of overexpansion, as I recently discovered that by March 2020, the founders Brian Smith and Jackie Cuscuna were forced to file for Chapter 11 bankruptcy.
Rapid Growth
Brian, a former screenwriter, and Jackie, a former high school teacher, started Ample Hills in 2010 with a passion for creating unique ice cream flavors. They began with a simple cart in Brooklyn's Prospect Park, selling inventive recipes that incorporated cookies, breakfast cereals, and even potato chips. The following year, they poured their life savings of $225,000 into opening their first brick-and-mortar shop, which was an instant success.
Ample Hills' popularity soared, leading to the opening of a second, larger location in 2014, complete with a 2,000-square-foot kitchen for nationwide shipping. The turning point came when Bob Iger, CEO of Disney, reached out after trying their ice cream. Iger became a mentor, and plans for a shop at Disney World began. To keep up with demand, Brian and Jackie sought venture capital funding, raising over $19 million from 2015 to 2019. They expanded to 13 locations, including shops in Los Angeles and Florida, and opened a massive 15,000-square-foot factory in Brooklyn's Red Hook neighborhood. However, the factory's costs spiraled out of control, requiring up to 30 shops to break even.
Filing For Bankruptcy
By 2019, Ample Hills' financial situation was dire, with losses approaching $7 million. Despite attempts to cut costs, including salary reductions and layoffs, the only viable option was bankruptcy. In 2020, Schmitt Industries purchased Ample Hills for $1 million, and Brian and Jackie declared personal bankruptcy, stepping away from the company they had spent ten years building.
Recovery
Refusing to give up, Brian and Jackie pivoted to a new venture, opening The Social, a smaller ice cream shop, in July 2021. They focused on profitability rather than rapid growth and found success with the help of investors who had experience in the food and beverage industry. In 2023, when they learned that Schmitt Industries planned to liquidate Ample Hills, Brian and Jackie's investors offered $150,000 to buy back the company. By June 2023, Ample Hills was officially back under their ownership.
Today, Brian and Jackie operate four Ample Hills shops along with The Social, with a renewed focus on sustainable growth. Reflecting on their experience, Brian and Jackie advise entrepreneurs to pursue their visions with passion but also pragmatism, emphasizing that failure is not the end but a stepping stone to future success.