Dairy Queen Chapter 11 Shockwave After Major Rival Bankruptcy
Concerns over Dairy Queen's financial stability are escalating following the bankruptcy filing of M&M Custard, a major franchisee of Freddy’s Frozen Custard & Steakburgers. The Chapter 11 petition, submitted in Kansas, discloses a stark imbalance: $5.2 million in assets against $27.7 million in liabilities. With 100–199 creditors and 31 affiliate locations across six states, the MOVE underscores broader distress in the fast-food sector.
Equity Bank tops the list of creditors, owed $8.5 million, followed by Budderfly LLC ($869,000) and insiders Eric H. Cole ($700,000) and Steven Nordstrom ($550,000). Despite the bankruptcy, Freddy’s outlets will continue operations, though the episode amplifies fears of widespread restaurant closures in 2025 as economic pressures mount.
