Last week, Vasari LLC, a Dairy Queen Franchise, filed for bankruptcy. The franchisee owns and operates over 70 Dairy Queen locations across Texas, New Mexico, and Oklahoma.
Vasari LLC filed for Chapter 11 bankruptcy, listing their category of debt as being between $10 million and $50 million. They listed their assets as being between $10 million and $50 million as well.
As of now, it appears that the company is trying to stay in business. Chapter 11 bankruptcy implies that debts can be organized. According to their bankruptcy petition, it appears that Vasari has enough money to pay unsecured creditors.
Court records said, "Vasari LLC, a Dairy Queen franchisee based in Texas, filed today for Chapter 11 bankruptcy protection. Under the Chapter 11 protection, the franchisee will restructure the company to close a significant number of underperforming restaurants by the end of the year, resulting in a smaller but financially stronger company with approximately 45 remaining restaurants in growing markets."
Bill Spae, the president and CEO of Vasari, said, "This decision was based solely on what’s best to have a healthy company and ensure the long-term success of our core restaurants for our customers, employees and other stakeholders. Given the support we have from our primary stakeholders toward a consensual plan of reorganization, we believe this process should have minimal impact on our customers and employees at the remaining restaurants."
The company said that a main reason for the setbacks was the decline in oil prices. They said that many of their restaurants are in prime "oil country" and that they have negatively felt the effects of the decline. They also said that their business was dramatically impacted by Hurricane Harvey.
Vasari LLC announced that they would be closing down 29 locations. They hope that by making this move, they will be able to protect the rest of the locations and the 700 jobs that go with them.
Below is a list of the restaurant locations that will be closed:
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