A sluggish oil market is being blamed in part for a Texas company to announce the closing of 29 Dairy Queen Stores in Texas, New Mexico and Oklahoma.
In Texas, the DQ sign is called the “Texas Stop Sign” but Irving-based Vasari LLC said the oil market plus the financial effects of Hurricane Harvey have forced it to close the operations. The company has also filed Chapter 11 bankruptcy in North Texas Federal bankruptcy court.
After financial restructuring, the company hopes to continue operations with about 45 restaurants in growing markets.
“This decision was based solely on what’s best to have a health company and ensure the long-term success of our core restaurants for our customers, employees and other stakeholders,” said William Spae, president and CEO at Vasari.
The restructuring allows the company to protect approximately 700 jobs at its remaining restaurants, the statement reads.
The company stated in its bankruptcy filing that many of its restaurants are position in prime oil country but “it has struggled to survive the far-reaching effects of dramatic declines in oil prices.”
In the bankruptcy filing, Vasari states that, because many of its restaurants are positioned in “prime oil country, it has struggled to survive the far-reaching effects of dramatic declines in oil prices.”
The document states the company closed approximately nine Dairy Queen locations prior to the petition being filed Monday and anticipates it will close approximately 20 additional Dairy Queen locations.