“There’s a lot of crossover between Brothers and Schoep’s,” said Gary Winkler, founder and CEO of Brothers International Desserts. “We are a family-run business, so when we heard of another family-run business that was struggling and in receivership in Madison, we jumped at the opportunity.”
Schoep's Ice Cream bought by California-based company
Schoep’s has for months searched for a buyer after filing in October for receivership, which is an alternative for bankruptcy. The proceeding placed the company’s assets under protection of court-appointed receiver Michael Polsky until a sale is made.
Brothers, founded in 1973 by Gary and Errol Winkler, began by selling Italian ice desserts in southern California. The company’s products are now sold in grocery stories and specialty shops around the country.
Gary Winkler said he believes Brothers will be able to “turn things around at Schoep’s.”
The announcement comes after Schoep’s receiver told the Dane County Circuit Court that an auction of Schoep’s and its assets failed to produce bids that he and one of Schoep’s main creditors, Johnson Bank, considered to be fair prices.
According to court documents signed Feb. 5, Brothers purchased Schoep’s and all its assets — aside from the Jennifer Street Market building, which had been previously purchased by the market operator. Properties purchased include a plant at 514 Division St., offices at 2066 and 2070 Helena St. and a warehouse at 6801 Manufacturers Drive.
Brothers offered employment to “substantially all employees of Schoep’s,” although it is not obligated to award vacation days previously accrued or maintain the same benefits packages.
Brothers plans to expand its production capabilities with the purchase and grow in Madison, according to a company statement.