Rebuilding from Bankruptcy: 3 Lessons from Our $40M Ice Cream Business Journey

Last Updated on October 29, 2023 by Robert C. Hoopes

Ample Hills Creamery, once a booming ice cream brand valued at $40 million, faced a devastating blow after a string of ill-fated business decisions. Co-founders Brian Smith and Jackie Cuscuna made every possible mistake, leading to a bankruptcy filing for their business in 2020, followed by personal bankruptcy just six months later.

However, the resilient duo decided to make a comeback in the ice cream industry, albeit with caution. They reopened their original Brooklyn storefront and three other locations in New York City. It was a bittersweet return for Smith and Cuscuna, as their financial troubles initially started when they struck a brand deal with Disney to create Star Wars-themed ice cream flavors. This partnership, while exciting, necessitated borrowing money from venture capitalists and banks.

Unfortunately, the Ample Hills team quickly found themselves overwhelmed by the demand and overspent on custom packaging and a new storefront in Los Angeles. Their inability to secure additional funding from investors left them with no choice but to file for bankruptcy, ultimately selling their once-thriving brand for a mere $1 million.

However, instead of dwelling on their misfortunes, Smith and Cuscuna took the opportunity to reflect on their mistakes. In 2021, they ventured into the ice cream business once again, this time with a fresh start. Their new shop, aptly named The Social, employed better financial management and secured knowledgeable investors.

Their persistence paid off, and in 2022, Smith and Cuscuna regained ownership of Ample Hills. Focusing on slow and sustainable growth, they vow not to repeat the errors of the past. Their journey holds valuable lessons for aspiring entrepreneurs: stay on top of debts, learn from mistakes, and be savvy with spending.

This story serves as a reminder that proactive cash flow management, self-reflection, and mindful spending can pave the way to financial success. With determination and strategic decisions, anyone can overcome adversity and carve out a promising career path, even in the unpredictable world of business.