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Kentucky factory’s bankruptcy nearly spelled doom for a small business

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Kentucky factory’s bankruptcy nearly spelled doom for a small business

LONDON, Ky. (WKYT) -Just weeks before Christmas, a southern Kentucky ice cream shop owner didn’t know how she was going to pay her bills.

Kristen Strawser, the owner of The Moody Cow in London, says one of their biggest invoices from a catering event at a major local factory was still unpaid.

Local officials say the company, Hearthside Food Solutions, didn’t pay their bill because they are going through Chapter 11 bankruptcy. In October, hand-rolled ice cream was served at Hearthside as part of an employee recognition event at its London plant.

Strawser billed Hearthside more than $3,000 from the October event and never got paid.

“I didn’t know how I was going to cover anything. My monthly bills or payroll or anything,” Strawser said.

She says she was told the invoice was approved multiple times, but no money came.

“It’s a week before Christmas. It has made it hard,” said Strawser.

London Mayor Randall Weddle says Hearthside Food Solutions recently filed for Chapter 11 Bankruptcy.

“It’s more of a financial reconstruction within the company. We’ve been told there will be no layoffs,” Weddle said. “But I never would have dreamed they weren’t going to pay at all.”

Strawser says Hearthside has hired them for events in the past and always paid on time. The story has a happy ending. Strawser says since word got out of what happened to them, an anonymous person in the community has agreed to pay the invoice.

“It is very humbling and heartwarming that someone is willing to do that,” said Strawser.

Mayor Weddle says Hearthside has worked with other smaller businesses that he’s heard were also impacted. WKYT tried contacting Hearthside Food Solutions for comment, but they have not responded.

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