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https://kxan.com/2017/10/31/more-than-70-dairy-queens-to-close-after-company-files-for-bankruptcy/
Dozens of Dairy Queens to close after franchisee files for bankruptcy
LUBBOCK, Texas (KLBK) — The parent company of dozens of Dairy Queen locations, including one in Central Texas, filed for bankruptcy on Monday.
The Vasari LLC website listed more than 70 Dairy Queen locations, including one in Giddings, Texas.
A call to the company headquarters revealed a recorded message saying the company filed for bankruptcy but the recording did not reveal much more. A look at court records made it clear the company is trying to find a way to stay in business.
Vasari LLC filed for Chapter 11 bankruptcy listing a category of debt between $10 million and $50 million. The category of assets was listed also as between $10 million and $50 million.
Chapter 11 allows for debts to be organized as opposed to Chapter 7 which calls for liquidation. Vasari’s bankruptcy petition indicated there would be enough money to pay unsecured creditors.
An emergency motion in the bankruptcy case said, “[Vasari] has identified its underperforming restaurants and will use the breathing spell provided by the filing of this bankruptcy case to continue to analyze those locations, their profitability, and potential remedies…”
Certain locations will be closed. Others might later be sold. Court records said low oil prices hit some of its restaurants. Mother nature was also a factor.
“Most recently, several of [Vasari’s] stores were negatively impacted by Hurricane Harvey – resulting in physical damage, extended closures, and loss of inventory,” the emergency motion said.
Court records also said, “[Vasari] owns/operates approximately 70 Dairy Queen (“DQ”) restaurants located in Texas, New Mexico, and Oklahoma, employing approximately nine hundred (900) non-insiders, not including twenty (20) corporate employees. Average daily performance across the Debtor’s DQ locations is $136,299.00 in net sales and 15,500 transactions.”
Dozens of Dairy Queens to close after franchisee files for bankruptcy
LUBBOCK, Texas (KLBK) — The parent company of dozens of Dairy Queen locations, including one in Central Texas, filed for bankruptcy on Monday.
The Vasari LLC website listed more than 70 Dairy Queen locations, including one in Giddings, Texas.
A call to the company headquarters revealed a recorded message saying the company filed for bankruptcy but the recording did not reveal much more. A look at court records made it clear the company is trying to find a way to stay in business.
Vasari LLC filed for Chapter 11 bankruptcy listing a category of debt between $10 million and $50 million. The category of assets was listed also as between $10 million and $50 million.
Chapter 11 allows for debts to be organized as opposed to Chapter 7 which calls for liquidation. Vasari’s bankruptcy petition indicated there would be enough money to pay unsecured creditors.
An emergency motion in the bankruptcy case said, “[Vasari] has identified its underperforming restaurants and will use the breathing spell provided by the filing of this bankruptcy case to continue to analyze those locations, their profitability, and potential remedies…”
Certain locations will be closed. Others might later be sold. Court records said low oil prices hit some of its restaurants. Mother nature was also a factor.
“Most recently, several of [Vasari’s] stores were negatively impacted by Hurricane Harvey – resulting in physical damage, extended closures, and loss of inventory,” the emergency motion said.
Court records also said, “[Vasari] owns/operates approximately 70 Dairy Queen (“DQ”) restaurants located in Texas, New Mexico, and Oklahoma, employing approximately nine hundred (900) non-insiders, not including twenty (20) corporate employees. Average daily performance across the Debtor’s DQ locations is $136,299.00 in net sales and 15,500 transactions.”
