Hurricane Harvey is a partially responsible for no more blizzards in Hobbs.
Harvey and the recent economic downtown in the oil industry were two reasons for the closure of the Dairy Queen at 220 E. Bender. Low performance for corporate finances earned the rest of the blame. The parent company, Texas-based Vasari LLC, filed for chapter 11 bankruptcy Monday listing a category of debt between $10 million and $50 million.
The category of assets also was listed 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, filed in the Fort Worth division of the U.S. Bankruptcy Court for the Northern District of Texas, indicated there would be enough money to pay unsecured creditors.
The Vasari LLC website lists more than 70 Dairy Queen locations, with bankruptcy documents listing the Hobbs location and at least 28 others for closure or later sale.
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, according to the motion.
“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.
Other locations for closure near Hobbs include Seagraves and Denver City, Texas. The Seminole, Andrews and Roswell locations were not listed for closure. Other locations remaining in operation are in New Mexico, Oklahoma and Texas.
The closure is the third long-time business to close in the past couple of weeks. Kaleidoscoops and Mrs. Baird’s Thrift Shop recently closed its doors. The News-Sun has been unable to contact principles of either business for comment.
Below is a statement regarding the closure of the Dairy Queen stores from Vasari LLC.
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.”