The parent company of several South Plains locations of Dairy Queen filed for bankruptcy on Monday. The Vasari LLC website listed more than 70 Dairy Queen locations. (See preliminary closing list below.)
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.”
“While certain of the [Vasari’s] stores are profitable, [Vasari] as a whole is facing net operating losses that cannot continue unabated,” the emergency motion said.
“[Vasari] closed approximately 22 Dairy Queen locations prior to the Petition Date and anticipates that it will close approximately 9 additional Dairy Queen locations … during this Bankruptcy Case,” court records said.
The following is a list of stores that were closed according to a public relations firm that represents Vasari:
224 S. Dumas Ave., Dumas, TX
977 East Austin St., Giddings, TX
1014 South Main St., Perryton, TX
1243 N. Main, Shamrock, TX
1100 N. 4th Ave., Teague, TX
7819 East Admiral Place, Tulsa, OK
298 West 1st, Claude, TX
720 West Gary Blvd, Clinton, OK
2000 S. Commercial Ave., Coleman, TX
1612 N. Frazier St., Conroe, TX
500 W. Broadway, Denver City, TX
200 Main St., Gruver, TX
211 North 1st St., Haskell, TX
220 West Bender Blvd, Hobbs, NM
217 South Main St., Lockney, TX
1107 North 7th St., Merkel, TX
9495 N. Owasso Expwy, Owasso, OK
601 N. Broadway, Post, TX
1010 Nacogdoches Highway, San Augustine, TX
1005 Railroad, Seagraves, TX
502 E. Texas Ave., Stratford, TX
1010 Houston St., Wellington, TX
The original version of this story on Tuesday directly quoted the store list that was filed in court on Monday. EverythingLubbock.com did request an accurate and up-to-date list prior to this story being published, and the company instead referred us to court records. It was only after publication, that the company provided an updated list.
Vasari provided the following statement:
IRVING, Texas, Oct. 30, 2017 – 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.
For continuously updated information on closures and the restructuring, visit donlinrecano.com/vasari.
“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,” said William (Bill) Spae, president and CEO of Vasari. “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 restructuring allows the company to protect approximately 700 jobs at its remaining restaurants. Employees at affected locations are being paid in full for time worked, and both human resources and area operations managers are available during crew members’ transition. Vendors, customers or others with questions may direct them to Donlin, Recano & Company, Inc at (212) 771-1128 or email@example.com.
In the coming years, Vasari plans to modernize and improve facilities in its remaining restaurants.