Vasari LLC, a Dairy Queen franchisee based in Texas, filed 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.
“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,” says 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.
In the coming years, Vasari plans to modernize and improve facilities in its remaining restaurants.