Huge Dairy Queen rival franchisee files for Chapter 11 bankruptcy

9 hours ago 1

Consumers emotion their frozen dessert fast-food chains and are disappointed anytime a section store closes down.

Among the sector's favourite chains are Dairy Queen, Culver's, Freddy's Frozen Custard & Steakburgers, and Rita's Italian Ice.

Fans of astir 30 Dairy Queens successful Texas whitethorn person been upset successful the archetypal fractional of 2025 erstwhile the genitor company, American Dairy Queen, pulled the franchises from franchisee Project Lonestar aft it failed to remodel its locations. That meant that those locations could not bid supplies from the genitor corp and would person to unopen down.

Devoted Rita's Italian Ice customers volition person to substitute their favourite frozen dainty for different company's offerings arsenic immoderate Rita's crossed the state adjacent their doors successful October each twelvemonth for astir 4 months.

Rita's Italian Ice & Frozen Custard successful Horseheads, N.Y., posted a connection connected its Facebook leafage successful September, alerting customers that its "2025 season" was ending connected Oct. 13.

"Our 2025 play volition beryllium coming to an extremity successful conscionable 4 abbreviated weeks. Make definite to halt successful and banal up connected each your favourite treats & flavors earlier we adjacent our doors!" the station read. An representation embedded successful the station stated: "Closing For The Season On 10/13."

Another frozen dainty concatenation mightiness beryllium closing immoderate locations aft filing for Chapter 11 bankruptcy protection.

Freddy's Frozen Custard & Steakburgers franchisee M&M Custard LLC filed for Chapter 11 protection.

Freddy's Frozen Custard & Steakburgers franchisee M&M Custard LLC and 31 affiliates filed for Chapter 11 bankruptcy extortion to reorganize their businesses and restructure debts, according to KCTV-5.

The Overland Park, Kan.-based debtor filed its petition successful the U.S. Bankruptcy Court for the District of Kansas connected Nov. 14, listing $5.2 cardinal successful assets and $27.7 cardinal successful liabilities, according to Bondoro.

Freddy's Wichita, Kan.-based genitor institution and franchisor did not record for bankruptcy.

The debtor's largest unsecured creditors see Equity Bank, owed $8.5 million; Budderfly LLC, owed implicit $869,000; insider Eric H. Cole, owed $700,000; insider Steven Nordstrom, owed $550,000; U.S. Food, owed implicit $524,000; West Side Investment LLC, owed $400,000; and Flowers Food, owed implicit $91,000.

Cole and Nordstrom each clasp 17% equity involvement successful the franchisee.