Dairy Queen franchisee files for bankruptcy, closes 3 Big Country locations
FORT WORTH, Texas - Citing low oil prices and Hurricane Harvey, the owner of 70 Dairy Queen locations in Texas, New Mexico and Oklahoma - including three in the Big Country - has filed for Chapter 11 bankruptcy.
As a result, Fort Worth-based Vasari, LLC will close about 25 locations, including the restaurants in Haskell, Merkel and Coleman.
"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.
Signs are posted on the three Big Country stores that read - "We are closed for business. Thank you for your past patronage."The locations have also been removed from the company's website.
KTXS obtained a copy of the bankruptcy filing. Vasari blames its financial troubles on low oil prices and Hurricane Harvey. "As many of its restaurants are positioned in prime 'oil country,' (Vasari, LLC) has struggled to survive the far-reaching effects of dramatic declines in oil prices," the filing states. "Several of (Vasari's) stores were negatively impacted by Hurricane Harvey - resulting in physical damage, extended closures and loss of inventory." The company chose to immediate close "certain historically unprofitable stores." The closures will result in the loss of about 200 jobs.