Financing

Texas DQ franchisee files for bankruptcy

A 70-unit Dairy Queen franchisee in Texas has filed for Chapter 11 bankruptcy protection, with plans to close about 25 stores.

“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 Bill Spae, CEO of Vasari LLC. “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 pruning will leave about 700 jobs in 45 restaurants, Vasari noted.  The company is based in Irving.

Texas is a key market for Dairy Queen, a brand whose ice cream and burgers restaurants were often the only restaurant option in a small town.

In the coming years, Vasari plans to modernize and improve facilities in its remaining restaurants. The chain, once among the nation’s 10 biggest quick-service restaurant brands, now ranks 21st on Technomic’s Top 500 list.

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