Dairy Queen franchisee files Chapter 11, closes 'significant number' of stores

Texas-based Dairy Queen franchisee Vasari LLC has filed for Chapter 11 bankruptcy protection and plans to restructure the  company, closing a "significant number" of underperforming restaurants by year-end, a news release said. The downsized company will keep 45 stores in what the brand said are 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," Vasari President and CEO William Spae said in the release. "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 release said restructuring protects 700 jobs in remaining stores. Businesses and customers with questions should contact Donlin, Recano & Company Inc. at 212-771-1128, or vasariinfo@donlinrecano.com.