© 2017 The Texas Lawbook.
By Korri Kezar of the Dallas Business Journal
(Nov. 6) – Irving-based Dairy Queen franchisee Vasari has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Northern District of Texas.
As part of the restructuring, Vasari said it is closing 23 units in three states, including 19 in Texas and three in Oklahoma. The company continues to operate 45 Dairy Queens employing roughly 700 workers.
Vasari turned to Husch Blackwell partner Vickie L. Driver and senior counsel Christina W. Stephenson. Both are in the firm’s Dallas office.
“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,” William Spae, Vasari’s president and CEO, said in a prepared statement.
The company continues to operate 45 Dairy Queens employing roughly 700 workers.
No decision has been made on whether any of the remaining restaurants will shutter, though some may close within the next 90 days, Nation’s Restaurant News reported.
Vasari added that it plans to remodel and improve any restaurants that remain open.
Vasari, which has several stores in Texas’ oil patch, said its financials have been hit hard by drops in oil prices over the past few years. Hurricane Harvey also caused damage, closures and inventory losses at several of Vasari’s stores.
In response to Vasari’s filing, Lou Romanus, CEO of the Texas Dairy Queen Operators Council, issued a statement saying the state remains a key market for the Dairy Queen brand.
“Although the franchisee determined that bankruptcy protection was necessary to strengthen its company, Dairy Queen remains a strong brand in our state,” Romanus said. “Texas is home to 130 Dairy Queen franchisees and more than 575 locations – more than any other state in the U.S. – the majority of which will continue to serve your communities.”
Dairy Queen is a subsidiary of Berkshire Hathaway Inc. and boasted systemwide domestic sales of $3.6 billion for the 2016 fiscal year.
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