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Closed Dairy Queens want to reduce liability for rent

Closed Dairy Queens want to reduce liability for rent. (File photo)

The financial battle continues for Varsari LLC., with its recent Dairy Queen closures.

According to court documents, the landlord for the now-closed location in Stratford, Texas, Edwin Estes Jr., has filed an objection to Vasari's request for a retroactive lease rejection.

On November 3, 2017, Vasari, LLC (the “Debtor”) filed its Motion for an Order Authorizing (I) Rejection of Certain Unexpired Real Property Leases and (II) Abandonment of Related Personal Property [Docket No. 65] (the “Original Motion”), requesting that the Court enter an order authorizing retroactive rejection of certain unexpired leases listed on Exhibits A and B to the Motion, which includes a lease wherein Estes is the landlord.

The lease between Varsari and Estes was entered into in May 2014 and paid until September 2017. Estes stated retroactive rejection of the lease should not be authorized, but instead should go into effect once the premises are surrendered to him.

READ MORE: Dairy Queen in Stratford closes, leaves residents shocked

Estes claimed he has not received the keys to the building and that Vasari is currently holding an auction for items that will be removed no later than November 16.

The purpose of the motion for retroactive rejection of the lease is to minimize liability for rent and other charges under the lease once the request is filed. In this instance, Vasari is requesting the relief while it still has possession of the property.

READ MORE: Dairy Queen files for bankruptcy; may close some Panhandle locations

A similar situation is happening with the Gruver and Coleman locations in Texas. The stores have been closed, but Vasari has not turned over the keys and is again asking for rejection of the leases. The landlord for those two locations, the Brown Family Revocable Trust , also filed an objection and stated it should be paid rent until the property is relinquished.

A hearing is scheduled for December 5.



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