Bank forecloses on Ellsworth.

Ellsworth Ice Cream, a leading regional private label manufacturer, is the subject of a foreclosure by Merchants Bank of Vermont. The bank is foreclosing on the company's manufacturing plant in its home town of Saratoga Springs, NY as well as the company's distribution center in Wilton, NY. The company also has a product, months after the bank paid off $300,000 of Ellsworth's overdue taxes. The bank is also foreclosing on mortgages involving some of the land parcels owned by the company.

Ellsworth has endured a series of reversals over the last several years which company ownership attributes to overexpansion. Specifically, the company's problems with the acquisition of a former Ben & Jerry's plant in Springfield, Vermont. That property was auctioned off in December 2006.

Ellsworth, founded in 1933, is a family owned and operated business now in its third generation. From its Wilton distribution center it served markets from Maine to Florida, offering a wide variety of private label frozen novelties as well as packaged ice cream and sherbet in pints, quarts and 3 gallon cans. The company also offered products under its own Saratoga label.

Both the product plant and the distribution center have ceased operations, but the company is hoping that an arrangement can be reached that will let it start up operations again before the end of the year. A representative for Merchants Bank told reporters that no decision had been made as yet as to whether it would take control of the properties, find a buyer, or work out an arrangement with Ellsworth that would allow the ice cream maker to continue in business.